UTI Mutual Fund has announced the launch of the UTI CRISIL SDL Maturity June 2027 Index Fund, an open-ended index fund. The new fund offer (NFO) which is launched today, will remain open for subscription till January 09, 2023. The scheme will reopen for subscription on January 12, 2023.
One must invest at least ₹5,000 in this scheme. Investors will be allotted units of this scheme at a face value of Rs10 per unit. Investors may park their money through either a lump sum or systematic investment plan (SIP) investment option. The minimum amount for daily, weekly and monthly SIP is Rs.500. The minimum amount for quarterly SIP is Rs. 1,500.
The scheme offers both regular and direct plans, both of which offer only the “Growth” option. This means that all the income generated and profits booked will be ploughed back and returns will be reflected through the fund’s net asset value (NAV).
The idea behind launching this scheme is to track the Index by investing in securities as represented by CRISIL IBX SDL Index – June 2027. Since returns from this scheme are subject to tracking errors, there is no guarantee or assurance that the scheme’s investment objective will be achieved.
There are no entry and exit loads to this scheme, thus, allowing investors the freedom to avail of the benefit from this investment opportunity at their will. This also means that premature partial and complete redemption from this scheme are allowed. The minimum redemption amount is Rs.1,000.
The scheme is moderately risky as per details shared in the scheme information document. This relatively high interest rate-risk and low credit-risk investment suits best the investors looking for income over the target maturity period.