UTI Floater Fund | Add to your child’s education fund!
Know all about UTI Floater Fund and the UTI Asset Management Company.
UTI is one of the pioneers of the Indian Mutual Fund Industry. With an AUM of more than Rs 2.66 Lakh crore, the AMC is among the most trusted names in the mutual fund space. The UTI Mutual Fund offers products across asset classes.
Let us discuss the flagship product – UTI Floater Fund.
About UTI Floater Fund
Investment Objective – The investment objective of the scheme is to generate reasonable returns and reduce interest rate risk by investing in a portfolio comprising predominantly of floating rate instruments and fixed rate instruments swapped for floating rate returns.
Investment Process
The scheme uses a systematic approach to debt investing, the “GIMS”, which is as follows:
- Gate:
- Encompasses issuer onboarding through rigorous analysis and research process
- Aims to build the investment universe in line with investment policies
- Investments:
- Comprehensive fund strategy framework
- Incorporates Fund Strategy and Style, Risk management Framework and Potential Risk Class Matrix
- Risk Limits are central to strategy
- Monitoring & Surveillance:
- Monitoring and review of the investment universe, Market Data Analytics, Early Warning Signal (EWS) parameters, Use of external sources for added surveillance, Automation for increased efficiency
Portfolio Composition
The portfolio comprises 93.03% allocation in debt, and the remaining 6.69% is held in cash and cash equivalents.
Note: Data as of 30th November, 2023.
Source: Value Research
Top 5 Holdings for UTI Floater Fund
Name | Instrument | Weightage % |
National Housing Bank Debenture 7.79 | Debenture | 8.80 |
Canara Bank CD | Certificate of Deposit | 8.65 |
Reserve Bank of India T-Bills 182-D 29/02/2024 | Treasury Bills | 6.92 |
Small Industries Devp. Bank of India Ltd CP | Commercial Paper | 6.87 |
Kotak Mahindra Bank Ltd CD | Certificate of Deposit | 6.62 |
Note: Data as of 30th November, 2023.
Source: Value Research
Performance Since Inception
Period | UTI Floater Fund | CRISIL Low Duration Debt Index (%) | CRISIL 10 Years Gilt Index (%) |
1 Year | 6.70 | 7.50 | 6.77 |
3 Years | 4.45 | 5.43 | 2.93 |
5 Years | 5.85 | 6.57 | 5.96 |
Since Inception | 5.87 | 6.65 | 6.30 |
Note: Data as of 30th November,2023
Source: utimf.com
Fund Manager
Mr.Sudhir Agarwal is the Fund Manager and Executive Vice President & Fund Manager-Fixed Income at UTI AMC Ltd. He joined UTI AMC in 2009 after four years of experience. He is a CFA Charter holder from CFA Institute, USA, and holds a post-graduate Diploma in Management and a master’s in commerce. He is a Fund Manager managing various debt schemes.
Why Invest in UTI Floater Fund?
- The scheme aims to generate accrual income by investing in high-quality debt and money market instruments, which are hedged using OIS swaps.
- The scheme is positioned to capture yield movement in the 6 to 12-month segment.
- The scheme maintains a moderate duration to reduce interest rate volatility.
Who Should Invest in UTI Floater Fund?
This fund is suitable for Investors
- Who are seeking for reasonable income and liquidity over the near to short term.
- Who are looking to diversify their fixed-income portfolio.
Ideal Time to Stay Invested
- Ideal for investment with a time horizon of 6 to 12 months.
Conclusion
UTI Floater fund is an open-ended debt scheme predominantly investing in floating rate instruments. The portfolio of this fund is High-Quality accrual oriented and is positioned to capture yield movement in the short term. Thus, investors who want to park their money for a short period with low to moderate risk metrics can consider this fund for investment.
Disclaimer: This is not recommendation advice. All information in this blog is for educational purposes only.
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