102510  |  INF789F01661  |  4 star  |  Neutral


$ 38.42

1-Day Total Return

INR | NAV as of 8/22/2017 9:30:00 AM | 1-Day Return as of 22 Aug 2017

TTM Yield




Total Assets

5.6 bil



Fee Level






Min. Inv.


30-Day SEC Yield



Intermediate Government Bond

Credit Quality/Interest Rate Sensitivity

Morningstar's Take | 12/12/2016
by Kavitha Krishnan

A skilled and experienced portfolio manager and a relatively low expense ratio stand out about this fund. The fund’s slightly conservative approach and focus on investing with a view to protect their downside as opposed to generating top-quartile performance results in a consistent performance that remains marginally above average across market cycles. While we have a positive opinion on the consistency with which the fund is run, we would like to monitor it over the long term before we can build more confidence in the fund’s process. We are also wary of the individual responsibilities shouldered by managers within the investment team. Given these factors, we initiate coverage on this fund with a Morningstar Analyst Rating of Neutral.

Amandeep Singh Chopra has been managing funds since 2006 and has been at the helm of this strategy since February 2012. He's one of the few managers in India with a 22-year association with the same company. While his leadership capabilities stand out, there is a key-person risk associated with him. Our concerns stem from the relatively higher levels of individual responsibilities on the three-member investment team. Sudhir Agrawal has been managing few of the largest fund offerings by the AMC, while Ritesh Nambiar doubles up as fund manager and head of credit research. The analyst team also seems slightly shorthanded: a three-member team including an economist. The three put together have an average experience of about five years

The Gilt L/T fund typically invests in G-Sec papers. Duration positioning is based on the managers' macroeconomic research and their views on interest-rate directional movements. They also constantly track the markets to ensure they are invested in the most-liquid papers that ensure tradability. While they don’t invest in state development loans, the fund’s mandate does not restrict them from doing so. The fund tends to actively trade in gilts to generate alpha and can invest a significant portion of its portfolio in a single paper.

Overall we think that the strategy is poised to maintain consistency in its performance profile over the long term with the exception of periods that are characterised by volatility and market uncertainties that favour short-term investing.

Morningstar Analyst Rating™
Analyst Rating
Portfolio Role

Average maturity can fluctuate significantly; currently runs a higher maturity compared with peers.


Led by an experienced manager with a long tenure, we are wary of the associated key-person risk.


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


The process hinges on the manager's skill and ability to position the fund across yield curves.


The fund posted a consistent performance except during periods characterized by extreme volatility.


The fund’s expense ratio is lower compared with the 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.

Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Manager Research Analysts’ expectations about future events and therefore involve unknown risks and uncertainties that may cause such expectations not to occur or to differ significantly from what was expected. Analyst Ratings are not guarantees nor should they be viewed as an assessment of a fund’s or the fund’s underlying securities’ creditworthiness.

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