UTI Mutual Fund Introduces New Benchmarks for Select Schemes

UTI Mutual Fund has recently updated the benchmarks for three of its schemes on November 29, 2024. These changes have been made to provide a better match between the schemes’ investment objectives and the indices they track, making sure there is greater alignment with their risk and maturity profiles. Here’s a breakdown of the updates:

Scheme-Wise Benchmark Revisions

1. UTI Annual Interval Fund – I and II
   • Previous Benchmark: CRISIL Low Duration Debt Index
   • New Benchmark: CRISIL Low Duration Debt A-I Index
     The revision shifts both interval funds to the CRISIL Low Duration Debt A-I Index, which better captures the funds’ focus on low-duration debt instruments. 
2. UTI Fixed Term Income Fund – Series XXXVI – I (1574 Days)
   • Previous Benchmark: CRISIL Medium to Long-Term Debt Index
   • New Benchmark: CRISIL Short Duration Debt A-II Index
     This adjustment aligns the fixed-term income fund with a benchmark that shows its relatively shorter investment horizon compared to its previous medium-to-long-term benchmark.

Why the Benchmark Revisions?

The new benchmarks will help improve performance comparability by aligning with the specific investment characteristics of each scheme. For instance:

• CRISIL Low Duration Debt A-I Index offers a focus on low-duration debt instruments.
• CRISIL Short Duration Debt A-II Index is more representative of short-duration debt portfolios, making it a fit for the Fixed Term Income Fund.

Key Takeaways for Investors

While these updates affect the benchmarks, the investment strategies of the schemes remain unchanged. Investors should assess these changes to ensure the revised benchmarks align with their financial goals.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.