UTI Short Term Income Fund seeks to generate steady and reasonable income, with low risk and high level of liquidity from, a portfolio of money market securities and high quality debt with maturity upto 4 yrs.
With one- and three-year returns of 10.12 per cent and 9.67 per cent, the fund has displayed an exceptional consistency in performance over two full rate cycles. Over three years, the fund has beaten its benchmark by a considerable 60 basis points and the category by 72 basis points.
UTI Short Term Income Fund actively juggles weights between sovereign debt, AAA and AA corporate bonds, commercial paper and call-money exposures to manage reasonable returns. The fund's relative weights between these instruments have been very dynamic.
UTI Short Term Income Fund is active with its duration, too, shifting it in the range of one-four years in the last one year depending on rate calls. This could explain its higher returns vis-a-vis the peers.
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