100741  |  INF789F01406  |  5 star  |  Bronze


$ 51.65

1-Day Total Return

INR | NAV as of 12/15/2017 10:30:00 AM | 1-Day Return as of 15 Dec 2017

TTM Yield




Total Assets

17.2 bil



Fee Level






Min. Inv.


30-Day SEC Yield



Intermediate Bond

Credit Quality/Interest Rate Sensitivity

Morningstar's Take | 17/10/2017
by Kavitha Krishnan

This fund is a good choice for investors who prefer a long-term approach and a consistent showing in performance. The fund’s appeal hinges heavily on the experience of its lead manager and the team’s consistent application of the investment process.

Portfolio manager Amandeep Singh Chopra has over 22 years of experience with UTI and has worked across various functions within the AMC. He heads the fixed-income desk at UTI and has been managing this fund since 2012. Chopra is supported by two other portfolio managers with an average experience of around nine years. The credit team includes two credit analysts and an economist. While we have conviction on the manager and the expertise that he brings to the processes within the fund house, we are wary of the lack of experience in the analyst team.

The UTI Bond fund focuses on the manager’s long-term views on the interest-rate-directional movements. This has been consistently applied as can be seen from the manager’s historical portfolio. The investment approach is primarily driven based on a top-down macro approach, with the fund investing across government securities, corporate bonds, and state-development loans based on their relative spreads. The manager tends to invest about 70% of the portfolio in AAA rated papers. The aim is to invest in the most liquid corporate bonds and the most traded government-securities papers with a view to minimise portfolio risks.

The fund is run with a lot of focus on risk-management measures. For example, the process dissuades managers from chasing momentum or taking aggressive duration calls. The internal risk team is also involved at every stage of the process including the approval of new issuers and setting counterparty limits. While this approach could lead to a slowdown in the overall execution, we think that it has also helped the fund navigate trickier markets and post consistent returns across market cycles.

The success of the fund depends largely on the team’s ability to take the right macro calls and position itself across yield curves. The execution of the strategy is reflected in the positive performance on the fund both on a cumulative as well as a year-on-year basis. Our conviction in the processes at the AMC, the stability and the experience that Chopra brings, and the consistency in the fund’s performance lead us to assign a Morningstar Analyst Rating of Bronze on this strategy.

Morningstar Analyst Rating™
Analyst Rating
Portfolio Role

The fund invests in a combination of government securities and high-quality-debt papers.


Chopra brings a lot of experience to the table and is amongst the most senior members on the team.


UTI has a strong backing from T.Rowe Price, but certain aspects could be improved in our opinion.


Led by an experienced manager who prefers consistent returns to taking aggressive duration bets.


The fund has managed to post consistent returns across time periods under Chopra’s lead.


The fund’s expense ratio is higher as compared with its category average.

Important Disclosures

Unless stated otherwise, this report was prepared by the person(s) noted in their capacity as Manager Research Analysts (i.e., fund analysts) employed by Morningstar, Inc., or one of its affiliates. It has not been made available to the issuer prior to publication.

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