Nfo
UTI Financial Services Debt Fund
NFO closes in
UTI Financial Services Debt Fund
The Scheme seeks to generate optimal returns for investors with a short-term investment horizon by investing predominantly in debt and money market securities issued by entities belonging to the financial services sector.
The Scheme will primarily invest in debt instruments of financial services entities with shorter duration maturities. Investments will be made in accordance with the Scheme’s investment objective, asset allocation limits and applicable regulatory requirements.
27 Oct 2026
02 Nov 2026
03 Nov 2026
₹ 10
₹ 500
₹ 500
Features
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Sector-focused strategy – At least 80% allocation to eligible debt and money market securities of financial services entities.
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Credit quality focus – Investment in corporate bonds rated AA+ and above.
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Accrual-focused approach – Primarily invests in shorter-duration financial services debt instruments.
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Risk management – Investment process supported by issuer evaluation, defined risk limits and ongoing monitoring and surveillance.
Who Should Invest
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Investors seeking reasonable income over the short term
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Investors seeking exposure to debt and money market securities issued by entities in the financial services sector
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Investors who understand and are willing to take relatively high interest-rate risk and moderate credit risk
NFO Documents
KIM
SID
Presentation
Frequently asked questions
Have questions? We are happy to help.
It is an open-ended debt scheme investing predominantly in debt and money market securities issued by entities belonging to the financial services sector. The scheme will invest in corporate bonds rated AA+ and above and aims to generate optimal returns for investors with a short-term investment horizon.
The scheme has a defined sectoral focus, with 80–100% of its assets allocated to debt and money market securities of financial services entities, subject to the prescribed credit-quality requirements. Unlike a broad-based debt strategy, its investment universe is predominantly linked to the financial services sector. This creates a distinct sector exposure and associated concentration risks.
The asset allocation specified in the presentation is:
|
Asset category |
Allocation |
|
Debt and money market securities of financial services entities, rated AA+ or above |
80–100% |
|
Debt and money market securities issued by entities outside the financial services sector, including specified repo instruments |
0–20% |
The detailed asset allocation and permitted instruments are governed by the Scheme Information Document (SID).
UTI's GIMS framework represents its systematic approach to fixed-income investing:
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G — Gate: Rigorous issuer onboarding, analysis and research to build the eligible investment universe in line with investment policies.
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I — Investments: A comprehensive fund strategy incorporating investment style, risk-management frameworks, the Potential Risk Class (PRC) matrix and defined risk limits.
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M — Monitoring and surveillance: Active portfolio and issuer monitoring, periodic reviews, market-data analytics, early warning signals (EWS), external surveillance inputs and automation.
The framework supports the investment process through issuer evaluation, portfolio construction and ongoing risk surveillance. It does not eliminate credit or market risk.
An accrual-focused strategy emphasises the income earned over time from the coupons and other income components of debt securities. However, the scheme's NAV is also affected by changes in market yields, credit spreads, security valuations, expenses and credit events. Therefore, accrual-focused investing does not mean that returns will be fixed or assured.
The presentation indicates a target duration of approximately 1–1.5 years at launch. This is an indicative positioning and may change depending on the Fund Manager's assessment of market conditions and the interest-rate outlook. The scheme's duration profile will be aligned with the benchmark's duration profile as prescribed by AMFI.
The minimum application amount is ₹500, with additional investment in multiples of ₹1 thereafter, as stated in the presentation. Investors should refer to the final SID and application documents for the applicable transaction conditions.
Product Label
This product is suitable for investors who are seeking*:
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Reasonable income over the short term
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Investment in debt and money market securities issued by entities in the financial services sector
Product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when actual investments are made.
* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Scheme Riskometer
Crisil Financial Services Short Term Debt Index
Potential Risk Class
In terms of SEBI Circular No. SEBI/HO/IMD/IMD-II DOF 3/P/CIR/2021/573 dated June 07, 2021, all debt schemes of UTI Mutual Fund have been classified in terms of a Potential Risk Class (PRC) Matrix, consisting of maximum interest rate risk (measured by Macaulay Duration (MD) of the scheme) and maximum credit risk (measured by Credit Risk Value (CRV) of the scheme) that a scheme can take, effective December 1, 2021.