By 121 News
Chandigarh 09th February:- After the reduction in policy rates by RBI in last few months, investors are looking towards short term income funds to gain from high accrual coupled with income stability due to lower duration.
One such fund is UTI Short Term Income Fund which aims to generate reasonable returns with low risk and high liquidity from a portfolio of money market securities and high quality of debt with a maturity cap of 4 years. The fund attaches importance to high credit quality and portfolio diversification.
Sudhir Agrawal, fund manager of UTI Short Term Income Fund said that after the recent front loading of rate cuts by RBI, scope for further rate cuts in next 3-6 months is limited. Hence, investors should start shifting focus to short term income funds as these funds offer high accrual along with lower volatility. He added that hence, we have been recommending investors to look at our short term income fund with an investment horizon of 1 to 3 years. Apart from the high accrual income in this fund, investors can look to gain from capital appreciation also if there are further rate cuts in next 3-6 months.
UTI Short Term Income Fund has been consistently outperforming its benchmark CRISIL Short-Term Bond Fund Index. Fund has given a return of 9.11% against its benchmark return of 7.70% since inception (as on June 30, 2015).
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