Upcoming NFO: UTI Mutual Fund Files Draft Papers for UTI Balanced Hybrid Fund

UTI Mutual Fund has filed the draft Scheme Information Document (SID) for the proposed UTI Balanced Hybrid Fund, an open-ended scheme that will invest only in equity and debt securities. The draft states that arbitrage transactions will not be permitted. 

According to the investment objective, the scheme aims to provide long-term capital appreciation along with income through a portfolio comprising equity, equity-related instruments, debt securities and money market instruments.  

The document also notes that there is no guarantee that the investment objective will be achieved.  

Investment and Subscription Details 

The scheme will be benchmarked against the NIFTY 50 Hybrid Composite Debt 50:50 Index. Once the fund reopens after the New Fund Offer (NFO), subscriptions and redemptions will be available on every business day at the applicable NAV.  

The fund will disclose its NAV daily, while redemption proceeds are to be paid within three working days. Any IDCW payout, where declared, will be processed within 7 working days from the record date.  

Plans, Minimum Investment and Charges 

The draft provides for Direct and Regular plans, with Growth and IDCW payout options under both. The minimum investment has been fixed at ₹1,000, and subsequent investments will also start from ₹1,000.  

The minimum SIP amount is ₹500 for daily, weekly and monthly instalments, while quarterly SIPs will require at least ₹1,500. No entry load will be charged.  

A 1% exit load will apply only if more than 10% of allotted units are redeemed within 12 months, while redemptions after one year will not attract any exit load.  

Operational Features 

The proposed scheme includes facilities such as Step-Up SIP, Any Day SIP, Pause SIP, and a Systematic Withdrawal Plan (SWP).  

It may also undertake stock lending and short selling in accordance with applicable regulations. As the scheme is yet to be launched, it does not have a performance history. The NFO opening and closing dates, along with the scheme code, will be announced separately.  

Read More: NFO Alert: Axis Mutual Fund Launches Axis Nifty Energy Index Fund! 

Conclusion 

The filing provides details of the proposed fund's investment objective, subscription terms and investor facilities. The scheme will become available after the NFO schedule is finalised and announced. 

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.