Best UTI Debt Funds Schemes

Fund Name
Ratings
Ratings in Descending
Rating in Ascending
Risk
Risk in Descending
Risk in Ascending
3Y Returns
Three Years Returns in Descending
Three Years Returns in Ascending
AUM
Asset Under Management in Descending
Asset Under Management in Ascending

UTI Medium To Long Duration Fund Regular Plan Half Yearly IDCW Reinvestment

Debt Medium to Long Duration Fund

4

Moderate

10.14%

₹319.60 cr.

UTI Gilt Fund

Debt Gilt Fund

3

Moderate

8.17%

₹732.75 cr.

UTI Gilt Fund Direct Plan IDCW Payout

Debt Gilt Fund

3

Moderate

8.16%

₹732.75 cr.

UTI Gilt Fund Direct Plan IDCW Reinvestment

Debt Gilt Fund

3

Moderate

8.16%

₹732.75 cr.

UTI Dynamic Bond Fund Direct Plan Flexi IDCW Payout

Debt Dynamic Bond

4

Moderately Low

8.1%

₹447.05 cr.

UTI Dynamic Bond Fund Direct Plan Flexi IDCW Reinvestment

Debt Dynamic Bond

4

Moderately Low

8.1%

₹447.05 cr.

UTI Dynamic Bond Fund Direct Plan Quarterly IDCW Payout

Debt Dynamic Bond

4

Moderately Low

8.1%

₹447.05 cr.

UTI Dynamic Bond Fund Direct Plan Quarterly IDCW Reinvestment

Debt Dynamic Bond

4

Moderately Low

8.1%

₹447.05 cr.

UTI Dynamic Bond Fund

Debt Dynamic Bond

4

Moderately Low

8.1%

₹447.05 cr.

UTI Dynamic Bond Fund Direct Plan Annual IDCW Payout

Debt Dynamic Bond

4

Moderately Low

8.1%

₹447.05 cr.

View All

About UTI Debt Funds

UTI Debt Mutual Funds offer a range of investment options, from short-term liquid funds to longer-term gilt funds. These UTI Schemes primarily invest in debt and money market securities, aiming to provide investors with a steady income. While UTI debt fund interest rates can fluctuate due to market conditions, these funds generally offer a lower risk profile compared to equity investments.

As a result, debt funds are often suitable for investors seeking a stable income stream and who are comfortable with a medium—to long-term investment horizon. Determining the best UTI mutual fund depends on several factors, such as interest rate changes and credit risk. Therefore, investors should carefully assess their financial goals and risk tolerance before making an investment decision.

UTI Debt Fund Investment Objective

UTI Debt Funds aim to provide investors with regular income and capital protection over a short to medium-term investment horizon. These funds primarily invest in fixed-income securities and other money market instruments. To assess the creditworthiness of issuers, the fund manager carefully evaluates the credit ratings assigned to these securities by the credit rating agencies.

The fund manager constructs the portfolio based on the UTI Schemes investment objective and the credit quality of the securities. Investors in UTI Debt Funds can expect to earn returns through interest income and potential growth in the fund’s value over time. However, it’s important to note that the fund does not guarantee achieving its investment objective.

Risks Involved in UTI Debt Funds

While UTI Debt Funds are generally considered less risky than equity funds, they are not entirely devoid of risk. The value of these funds can fluctuate based on changes in the underlying debt securities prices. Several factors can influence these prices, including interest rate fluctuations, government policies, tax regulations, and broader economic conditions. An increase in interest rates typically leads to a decline in debt security prices, while a decrease in interest rates can cause prices to rise.

The level of risk in a debt fund is influenced by its duration and credit quality. Funds with longer durations tend to be more sensitive to interest rate changes, carrying higher market risk. Similarly, debt funds investing in lower-rated securities are subject to greater credit risk compared to those focused on higher-rated instruments.

Return Potential in UTI Debt Funds

UTI Debt Funds primarily generate returns through the interest earned on the fixed-income securities they hold. This interest income is often measured by the fund’s Yield to Maturity (YTM), which is disclosed in the monthly fund factsheet.

However, returns can also be influenced by changes in interest rates and credit ratings. When interest rates decline, the value of existing fixed-rate securities tends to increase, potentially boosting fund returns. Similarly, improvements in a security’s credit rating can positively impact its value.

The potential return from a debt fund is closely linked to its risk profile. Funds investing in lower-rated securities, often called Credit Risk Funds, typically offer higher potential returns to compensate for the increased risk. On the other hand, funds focused on higher-rated securities, such as Corporate Bond Funds, generally provide lower returns due to their lower risk profile.

Furthermore, the fund’s duration, or the average maturity of its holdings, impacts returns. Longer-duration funds, like Gilt Funds, tend to be more sensitive to interest rate fluctuations and may offer higher potential returns compared to shorter-duration funds.

Who Should Invest in UTI Debt Funds?

UTI Debt Funds are often well-suited for investors seeking a balance between regular income and capital preservation. Those with a conservative investment approach and a medium-term horizon can benefit from the relatively stable returns offered by these funds.

Debt funds can serve as a valuable component of a diversified portfolio, helping to offset the volatility associated with equity investments. Investors looking for a liquid investment option may find liquid debt funds particularly attractive due to their quick redemption facilities.

Ultimately, investors with a moderate risk appetite and reasonable return expectations can consider UTI Debt Funds as a suitable investment option to achieve their financial goals.

Mutual Funds Calculators

UTI Debt Funds FAQs

How to Invest in UTI Debt Funds?

You can invest in UTI Debt Funds through the UTI Mutual Fund website, the UTI mutual fund list section, the mobile app, authorised distributors, and financial advisors, or submit an application form at a physical branch. Alternatively, online investment platforms like Angel One also facilitate easy investments in these funds. Remember, your investment is based on the UTI Debt Fund NAV, which fluctuates daily.

Is the UTI Debt Fund good to invest in?

UTI offers a range of debt funds, each with different risk profiles and investment objectives. Whether UTI MF Debt Funds are a good fit depends on your risk tolerance, investment horizon, and financial goals. Research the UTI Best Funds thoroughly and consider consulting a financial advisor.

What is the exit load of UTI Banking & PSU Fund - Regular Plan?

UTI Banking & PSU Fund - Regular Plan has no exit load.

Is the UTI Debt Fund taxable?

Yes, UTI Debt Funds are taxable. The tax implications depend on the holding period and the type of debt fund. Long-term capital gains on debt funds held for more than 3 years will now be taxed at a flat rate of 12.5%, while short-term gains are based on your income tax bracket.

How to calculate the UTI Mutual Fund returns?

To calculate UTI MF Debt Funds returns, you can use online calculators like the Angel One Mutual Fund Calculator. These tools help you estimate returns based on your investment amount, duration, and expected rate of return, making it simple and convenient.