UTI Dynamic Bond Fund - Generated a return of 10.13% since inception

UTI Dynamic Bond Fund - Generated a return of 10.13% since inception 

UTI Dynamic Bond Fund

UTI Dynamic Bond Fund is an all weather fund that has the flexibility to counter a dynamic environment by actively managing the portfolio in line with the evolving interest rate scenario. 

The fund is being managed dynamically with active and more frequent duration calls in order to generate alpha in line with the evolving interest rate scenario. It has the ability to reduce maturity when interest rates are rising, thereby preserving capital and can generate the attractive returns of an Income Fund when interest rates are declining.

Mr. Amandeep Chopra, Head of Fixed Income, UTI AMC said, “We are right now at a juncture where there is a lot of uncertainty around us. We have seen best of inflation behind us, sequentially inflation should trend up which would be a cause of concern. We don’t think October rate cut is a given, but at the same time we are also not saying that another rate cut won’t happen — the timing of such an event is very uncertain. Globally, we are seeing reversal of central banks’ stance, either they are looking to shrink balance sheet or they want to continue/initiate rate hike cycle. Domestically, demonetization and GST are playing out and we still have to look at their impact. So the RBI policy is grappling with these just as additional data will be critical for some clarity. Post-October, there would be much more clarity, the September Fed policy will also be behind us. So, right now, it is just a wait-and-watch stand. In such a scenario, funds having the ability and flexibility to tap opportunities across the yield curve, like UTI Dynamic Bond Fund would benefit the investors.”

This fund can form part of an investor’s strategic debt allocation to build a balanced portfolio. The fund has outperformed the benchmark, CRISIL Composite Bond Fund Index across time horizons. The fund has generated a return of 10.13 against benchmark returns of 8.72% since inception (as June 30, 2017)

 

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