UTI Bond Fund, an open ended pure debt fund with a corpus of around Rs 1,375 crore, has increased the average maturity of portfolio to 5.09 years at the end of May 2002, from 5 years, in government securities. The fund has currently invested 20 per cent of its portfolio in government securities from around 16-17 per cent at the end of April.
K Ramkumar, assistant general manager, said: "The uncertainty on the border front had led to fall in prices of government securities and we have increased our exposure to take advantage of higher yields and falling prices."
The fund has also around 76 per cent in corporate debentures. Of which, 16 per cent is invested in AA+ grade paper and 8 per cent in AA grade. The scheme has given annualised returns of 12.64 per cent under the growth plan and 12.72 per cent under the income plan since launch. In the last one year, the returns were 12.41 per cent and 12.71 per cent respectively under the two options. The scheme has invested around four per cent in money markets and cash.
Recently, UTI had declared a bonus in the ratio of 4:10 to unitholders existing under the income option. The book closure is from June 24-30, 2002. UTI had introduced income option from October 1, 2001, under the fund. Since then, UTI had paid income distributions of 0.30 per unit (face value of Rs 10) for the quarter, as of January 24, 2002, and Rs 0.50 per unit (face value Rs 10) for the quarter, as of May 17, 2002.