UTI MF to float credit opportunities debt scheme on Oct 25

UTI Mutual Fund is all set to launch a new open-ended debt scheme 'UTI- Credit Opportunities Fund', a top company official has said.

"This new fund offering will try to capture the differentials in ratings and appreciation in capital market bonds or corporate bonds in a bid to give higher returns to investors," Group President and Head of Fixed Income at UTI MF Amandeep S Chopra told PTI.

The new fund will open for subscription on October 25 and will close on November 8, he added.

On asset allocation under the new scheme, Chopra said the fund will invest 35-100% in debt instruments and 0-65% in money market instruments.

The fund is also allowed to invest up to 50% of its net assets in securities with under AA grade.

"We will invest in those instruments which may have a lower grading today but is likely to be upgraded in future due to their sound fundamentals. This way, we will try to give higher returns in comparison to other debt funds by capturing the rating differentials," Chopra said.

He said the fund will target retail investors, high net-worth individuals and corporates.

Chopra also said UTI MF expects to garner around Rs 700-1,000 crore from this new scheme.