UTI Spread Fund

UTI Spread Fund is managed by Kaushik Basu. The investment objective of the scheme is to provide capital appreciation and dividend distribution through arbitrage opportunities arising out of price differences between the cash and derivative market by investing predominantly in equity & equity related securities, derivatives and the balance portion in debt securities. However, there can be no assurance that the investment objective of the scheme will be realised.

Where does UTI Spread Fund invest your money?

UTI Spread Fund is a balanced fund which invests your money in both equity securities and debt securities. It has more than 14% exposure to equity and 23% exposure to debt. Its equity portion has mid cap bias which means most of your money will be invested in stocks of medium sized and small sized companies. UTI Spread fund has 100% exposure to large sized companies.

Its debt portion has allocation in corporate debentures and government securities. It currently holds close to 62% of its assets in cash and equivalents such as T-bills, banker’s acceptance and money market instruments.

Suitable for what?

The following needs if occurring between 3 and 5 years:

  • Child's education
  • Marriage
  • Home Purchase
Not suitable for what?
  • Long term needs
  • Creation of wealth
How has UTI Spread Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in June 2006, your value of investments would be around Rs 1.58 lakhs. If you had invested Rs. 1 lakh 5 years back you would have around Rs. 1.43 lakhs. The fund’s performance has been similar to other funds in this category. It has been giving around 8% to investors who have stayed invested for 5 years.

Assume you had invested Rs 10,000 every month in UTI Spread Fund through SIP since inception today you would have around Rs 7.37 lakhs.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
When to exit?

Withdraw when your goals are close to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

What are the charges applicable?

Exit load of 0.5% is charged if units are redeemed within 179 days from the date of allotment. No exit load applies for units withdrawn post one year. Expense ratio of UTI Spread Fund is 1.00%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

What are the tax implications?

The returns in an equity mutual fund are absolutely tax free, provided you do not withdraw within 1 year.

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