Introduction to UTI Fixed Term Income Fund Series XXX III 1106 Days Direct Plan

In the realm of fixed income investments, UTI Mutual Fund offers a compelling option for investors seeking stable returns with minimal risk: the UTI Fixed Term Income Fund Series XXX III 1106 Days Direct Plan. This fund is part of the Fixed Maturity Plan (FMP) category, designed to provide predictable returns by investing in a portfolio of fixed-income securities that mature around the same time as the fund itself. Let's explore the key features, benefits, and performance of this fund to understand why it might be an attractive choice for investors.

Key Features of the Fund

• Investment Objective: The primary goal of this fund is to generate returns by investing in a diversified portfolio of fixed-income securities, such as zero-coupon bonds, commercial papers, and non-convertible debentures, which mature on or before the fund's maturity date[1][3].

• Launch Date: The fund was launched on September 11, 2018, marking its inception in the financial market[1].

• Minimum Investment: The minimum initial investment required is ₹5,000, with additional investments starting at ₹10. However, Systematic Investment Plans (SIPs) are not supported for this fund[1][4].

• Exit Load: There is no exit load associated with this fund, providing flexibility for investors to withdraw their investments without incurring additional charges[1].

Performance and Returns

The performance of the UTI Fixed Term Income Fund Series XXX III 1106 Days Direct Plan can be evaluated based on its returns over various periods. As of September 21, 2021, the fund's performance showed:

• 1-Year Return: The fund provided a return of approximately 4.51% over a two-year period, reflecting a stable performance in a volatile market[3].

• 3-Year Return: Over a three-year horizon, the fund's return was marginal, indicating a conservative approach to investment[3].

• Category Ranking: The fund ranked well within its category for certain periods, demonstrating its potential for steady returns[3].

Benefits of Investing in FMPs

Fixed Maturity Plans (FMPs) like the UTI Fixed Term Income Fund Series XXX III 1106 Days Direct Plan offer several benefits to investors:

• Predictable Returns: FMPs aim to provide returns that are relatively predictable, as they invest in securities with fixed maturities.

• Low Risk: These funds typically carry lower risk compared to equity investments, making them suitable for conservative investors.

• Tax Efficiency: Returns from FMPs are taxed as per the investor's income tax slab, which can be more efficient than traditional fixed deposits for those in higher tax brackets.

Portfolio Composition

The fund's portfolio includes a mix of zero-coupon bonds, non-convertible debentures, and other fixed-income instruments. For instance, it has invested in JM Financial Asset Reconstruction Company Ltd zero-coupon bonds, which constitute a significant portion of its holdings[1][4].

How to Invest

Investing in the UTI Fixed Term Income Fund Series XXX III 1106 Days Direct Plan is straightforward:

1. Choose a Platform: Investors can use online platforms like Groww, Moneycontrol, or visit the UTI Mutual Fund website directly.

2. KYC Compliance: Ensure you are KYC compliant to proceed with the investment.

3. Investment Amount: Deposit the minimum required amount of ₹5,000.

4. Monitor Performance: Keep track of the fund's performance and adjust your investment strategy as needed.

Conclusion

The UTI Fixed Term Income Fund Series XXX III 1106 Days Direct Plan is a viable option for investors seeking stable returns with a low-risk profile. While it may not offer spectacular growth, it provides a predictable income stream, making it suitable for those looking to diversify their portfolios with fixed-income investments.

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