KEY INFORMATION MEMORANDUM FOR INCOME SCHEMES

Transcription

1 KEY INFORMATION MEMORANDUM FOR INCOME SCHEMES NAME OF THE SCHEMES THIS PRODUCT IS SUITABLE FOR INVESTORS WHO ARE SEEKING* RISKOMETER UTI-Liquid Cash Plan (An Open-ended Income Scheme) UTI-Money Market Fund (An Open-ended Money Market Mutual Fund) Steady and reasonable income over short-term with capital preservation. Investment in money market securities & high quality debt Current income consistent with preservation of capital over short-term Investment in short-term money market securities UTI - Floating Rate Fund (An open-ended income scheme) UTI - G-SEC Fund (An open-ended dedicated gilt fund) UTI - Treasury Advantage Fund (An open-ended income scheme) Regular income over short-term Investment in floating rate debt / money market instruments, fixed rate debt / money market instruments swapped for floating rate return Short term credit risk free return Investment in Central Government Securities, Treasury Bills, Call Money and Repo Capital preservation and liquidity for short-term Investment in quality debt securities/ money market instruments UTI Banking & PSU Debt Fund (An open-ended income scheme with no assured return) Generate steady & reasonable income over short to medium term Investment in predominantly Debt & Money Market Securities issued by Bank & Public Sector Undertaking (PSUs) UTI - Bond Fund (An open-ended pure debt fund) Regular returns for long-term Investment predominantly in medium to long term debt as well as money market instruments UTI - Dynamic Bond Fund (An open-ended income scheme) UTI-Fixed Maturity Plan (A close-ended umbrella income scheme comprising of several Investment Plans) Optimal returns with adequate liquidity over medium-term Investment in debt/money market instruments Regular income for short term Investment in Debt/Money Market Instrument/Govt. Securities * Investors should consult their financial advisers if in doubt about whether the product is suitable for them Please read overleaf February 23, 2017

2 NAME OF THE SCHEMES THIS PRODUCT IS SUITABLE FOR INVESTORS WHO ARE SEEKING* RISKOMETER UTI - Gilt Advantage Fund (An open-ended gilt scheme) UTI - Income Opportunities Fund (An open-ended income scheme) UTI-Medium Term Fund (An open ended income scheme with no assured returns) UTI - Monthly Income Scheme (An open-ended debt oriented scheme) UTI - Short Term Income Fund (An open-ended income scheme) UTI-Mahila Unit Scheme (An open-ended debt oriented scheme) UTI - MIS-Advantage Plan (An open-ended income scheme) UTI- Unit Scheme for Charitable & Religious Trusts & Registered Societies (UTI-C.R.T.S) (An open-ended income scheme) Long-term credit risk free return Investment in sovereign securities issued by the Central Government and / or a State Government and / or any security unconditionally guaranteed by the Central Government and / or a State Government Reasonable income and capital appreciation over longterm Investment in debt and money market instruments across different maturities & credit rating Steady and reasonable income over the medium term Investment in Debt/Money Market Instrument / Govt. Securities Regular income over medium-term Investment in equity instruments (maximum-15%) and fixed income securities (debt and money market securities) Steady and reasonable income over short-term Investment in money market securities/ high quality debt Reasonable income with moderate capital appreciation over a long-term horizon Investment in equity instrument (maximum-30%) and debt/ money market instruments Long-term capital appreciation and regular income over medium-term Investment in equity instruments (maximum-25%) and fixed income securities (debt and money market securities) Regular income over long-term Investment in equity instruments (maximum-30%) and debt/ money market instruments * Investors should consult their financial advisers if in doubt about whether the product is suitable for them

3 KEY INFORMATION MEMORANDUM This Common Key Information Memorandum (KIM) sets forth the information, which a prospective investor ought to know before investing. For further details of the scheme/mutual Fund, due diligence certificate by the AMC, Key Personnel, Investors rights & services, risk factors, penalties & pending litigations etc. investors should, before investment, refer to the Scheme Information Document and Statement of Additional Information available free of cost at any of the UTI Financial Centres or distributors or from the website The scheme particulars have been prepared in accordance with Securities and Exchange Board of India (Mutual Funds) Regulations 1996, as amended till date, and filed with Securities and Exchange Board of India (SEBI). The units being offered for public subscription have not been approved or disapproved by SEBI, nor has SEBI certified the accuracy or adequacy of this KIM. Investment Objective Asset Allocation Pattern of the scheme Investment Strategy Comparison with existing schemes UTI-Banking & PSU Debt Fund The investment objective of the scheme is to generate steady and reasonable income, with low risk and high level of liquidity from a portfolio of predominantly debt & money market securities by Banks and Public Sector Undertakings (PSUs). Types of instruments Debt and Money Market Securities issued by Banks and Public Sector Undertakings (PSUs) Debt (including government securities) and Money Market Securities issued by entities other than Banks and Public Sector Undertakings (PSUs) Indicative Allocation (% of Total Assets) Minimum - 80% Maximum - 100% Minimum - 0% Maximum - 20% Risk profile Low to Medium Low to Medium Total investments in debt, money market instruments, units of mutual fund scheme and gross exposure in derivatives shall not exceed 100% of the net assets of the scheme. Investment focus and asset allocation strategy The scheme would seek to invest in debt instruments which offer superior levels of yields at lower levels of risks with the intent of maximizing returns and at the same time ensuring reasonable liquidity. UTI-Banking & PSU Debt Fund is an income scheme investing in a portfolio of predominantly debt & money market securities issued by Banks and Public Sector Undertakings and thus has portfolio restrictions unlike other debt schemes like UTI Bond Fund, UTI Dynamic Bond Fund etc which have no such restrictions on their investment in debt and money market instruments Plans and Options 1. UTI-Banking & PSU Debt Fund Regular Plan 2. UTI-Banking & PSU Debt Fund Direct Plan Both the Plans offer the following options: (a) Growth Option (b) Monthly Dividend Option** (c) Quarterly Dividend Option** (d) Half Yearly Dividend Option** (e) Annual Dividend Option** (f) Flexi Dividend Option** ** both payout & reinvestment facilities Default Option Growth Option Minimum Application `5,000/- and in multiples of `1/- under both the Plans and Options. Amount / Subsequent Subsequent Minimum Investment Amount is `1,000/- and in multiples of `1/- thereafter with no upper limit under Minimum Investment in all the Plans and Options. the same folio Benchmark Index CRISIL Short Term Bond Fund Index Name of the Fund Sudhir Agarwal (Managing the Scheme since August 2014) Manager Performance of the UTI-Banking & PSU Debt Fund scheme as on 31 January, 2017 Crisil Short Absolute Returns for the last 2 financial year Compounded Scheme Term Bond Annualised 15 Returns (%) Fund Index Returns* (%) Last 1 year Since Inception * Computed on compounded annualized basis using NAV of Growth option. Past performance may or may not be sustained in future. returns (%) UTI-Banking & PSU Debt Fund (%) CRISIL Short Term Bond Fund Index (%) 3

4 Top 10 holdings by issuers and sectors (31 st January 2017) UTI-Banking & PSU Debt Fund - Top 10 holdings (Debt Issuer wise) Serial No Issuer Name % of NAV 1 Government of India Vijaya Bank Small Industrial Development Bank Of India Exim Bank IDBI Bank Ltd Corporation Bank Bank Of Maharashtra Power Finance Corporation Ltd National Bank For Agriculture & Rural Development Indian Railways Fin Corporation Ltd Total UTI-Banking & PSU Debt Fund - Top 10 holdings- Debt Sectoral Allocation Serial No Sector % of NAV 1 Financial Services NCA/Reverse Repo/CBLO/Others Sovereign Chemicals Construction Energy 2.34 Total Portfolio Turnover Ratio Portfolio Turnover Ratio as on 31 st January 2017: 5.07 Sharpe Ratio Period to : 0.29 Expenses of the Scheme Entry load (As % of NAV) (i) Load Structure NIL (ii) Recurring expenses First `100 crores 2.25% Next `300 crores 2.00% Next `300 crores 1.75% Balance 1.50% Dividend Policy Number of folios and Asset Under Management (AUM) as on 31st January 2017 Eligible Investors Exit Load (As % of NAV) NIL Actual expenses for the period to : 0.17% Dividend distribution, if any, under the Dividend Option of the scheme will be made subject to availability of distributable surplus at such intervals as is indicated under the scheme or as may be decided by UTI AMC and approved by the Trustees from time to time. Under the Monthly/Quarterly/Half Yearly & Annual Dividend Options, it is envisaged to declare dividends on a monthly/quarterly/half yearly & annual basis respectively subject to availability of distributable surplus computed in accordance with SEBI Regulations. Under the Flexi Dividend Option dividend is proposed to be declared at such frequencies as may be decided by UTI AMC Ltd and approved by the Trustees from time to time, subject to availability of distributable surplus computed in accordance with SEBI Regulations. However, under all the dividend options, there is no assurance or guarantee to the unit holders, as to the rate and frequency of declaration of dividend. UTI AMC Ltd./Trustees reserves the right to declare or not to declare dividend at any frequency, as it may deem fit, under these Options. Number of Folios Asset Under Management (AUM) 2975 ` Crore (AAUM as on 31/01/2017) (a) An application for issue of units can be made by any resident or non-resident Indian as well as nonindividuals (not being OCBs) as indicated below: (i) a resident individual or an NRI or person of Indian origin residing abroad either singly or jointly with another or upto two other individuals on joint/anyone or survivor basis. An individual may make an application in his personal capacity or in his capacity as an officer of a Government or of a Court, (ii) a parent, step-parent or other lawful guardian on behalf of a resident or a NRI minor. Units can be held on Joint or Anyone or Survivor basis, (iii) a Hindu Undivided Family both resident and non-resident, (iv) a body corporate including a company formed under the Companies Act, 1956 [replaced by The Companies Act, 2013 (No.18 of 2013)] or established under State or Central Law for the time being in force, 4

5 (v) a bank including a scheduled bank, a regional rural bank, a co-operative bank etc, (vi) an eligible trust including Private Trust being irrevocable trust and created by an instrument in writing, (vii) a society as defined under the scheme, (viii) a Financial Institution, (ix) an Army/Navy/Air Force/Paramilitary Fund, (x) a partnership firm, (xi) Foreign Portfolio Investor (FPI) as defined under Regulation 2(1)(h) of Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014; (xii) an association of persons or body of individuals whether incorporated or not, (xiii) Mutual Funds registered with SEBI, (xiv) Scientific and Industrial Research Organisation, (xv) Multilateral Funding Agencies / Bodies Corporate incorporated outside India with the permission of the Government of India / Reserve Bank of India, (xvi) Other schemes of UTI Mutual Fund subject to the conditions and limits prescribed by SEBI Regulations, (xvii) Such other individuals / institutions / body corporate etc., as may be decided by the AMC from time to time, so long as wherever applicable they are in conformity with SEBI Regulations. Further, subject to the Regulations, the Sponsors, the Mutual Funds managed by them, their Associates and the AMC may acquire units of the Scheme. The AMC shall not be entitled to charge any fees on its investments in the Scheme. (b) Applications for purchase of units shall be made by such persons as are duly authorised in this behalf by the charter of establishment, rules and regulations, etc., governing the specified investors. (c) Applications for units shall be accompanied by such documents as the UTI AMC may prescribe in this behalf from time to time. The fund reserves the right to include/exclude, new/existing categories of investors to invest in the scheme from time to time, subject to SEBI Regulations, if any. Subject to the Regulations, the Trustee/AMC may reject any application received, in case the application is found invalid/incomplete or for any other reason at the Trustee s / AMC s Sole discretion. Investment by Individuals Foreign Nationals For the purposes of carrying out the transactions by Foreign Nationals in the units of the Schemes of UTI Mutual Fund, 1. Foreign Nationals shall be resident in India as per the provisions of the Foreign Exchange Management Act, Foreign Nationals are required to comply (including taking necessary approvals) with all the laws, rules, regulations, guidelines and circulars, as may be issued/applicable from time to time, including but not limited to and pertaining to anti money laundering, Know Your Customer (KYC), income tax, foreign exchange management (the Foreign Exchange Management Act, 1999 and the Rules and Regulations made thereunder) including in all the applicable jurisdictions. UTI AMC reserves the right to amend/terminate this facility at any time, keeping in view business/operational exigencies. Overseas Corporate Bodies (OCBs) are not allowed to invest in units of any of the schemes of UTI MF. Please refer to SID & SAI for details. Investment by other Overseas Investors Neither the SID nor the units of Schemes have been registered in any jurisdiction including the United States of America. No persons receiving a copy of such SID or any accompanying application form in such jurisdiction may treat the said SID or such application form as constituting an invitation to them to subscribe for units, nor should they in any event use any such application form, unless in the relevant jurisdiction such an invitation could lawfully be made to them and such application form could lawfully be used without compliance with any registration or other legal requirements. For further details as to who can invest, please refer to the SID of the scheme. Facilities Offered 1. Systematic Investment Plan (SIP) 2. Systematic Withdrawal Plan (SWP) Additional under SIP Facilities 3. Systematic Transfer Investment Plan (STRIP) (Available as Source & Destination Scheme) Under the SIP facility, the following additional facilities are available viz. Step up facility, Facility to switch from one eligible scheme to another eligible scheme and Any Day SIP. For further details on the above facilities under Systematic Investment Plan (SIP), please refer to Addendum No. 38/15-16 dated 16th September

6 Investment Objective Asset Allocation Pattern of the scheme Investment Strategy Comparison with existing schemes Plans and Options UTI Bond Fund The Scheme will retain the flexibility to invest in the entire range of debt and money market instruments. The flexibility is being retained to adjust the portfolio in response to a change in the risk to return equation for asset classes under investment, with a view to maintain risks within manageable limits. Normal Allocation Types of instruments Risk profile (% of Net Assets) Debt Instruments (including securitised debt) Minimum - 75% Maximum - 100% Low to Medium Money Market Instruments (including cash/call Minimum - 0% Maximum - 25% Low to Medium money) The Scheme does active duration management by investing typically in medium to long term maturity corporate bonds and G-Secs. However, fund manager has the flexibility to invest in short end of the curve if the investment environment if not conducive for long or medium duration papers. UTI Bond Fund is an income scheme investing in medium to long term duration papers with the flexibility to invest in short term papers based on investment views. The scheme takes active duration calls along with credit calls and thus witnesses a certain amount of volatility compared to ultra short term or short term category of funds. In terms of risk return matrix, the Bond Fund would be in a higher risk-return quadrant vis-à-vis the Ultra Short Term category. In addition to the Existing Plan, there is a Direct Plan. Both the Plans offer the following options: (a) Growth Option (b) Quarterly Dividend Option** (c) Half Yearly Dividend Option** (d) Annual Dividend Option** (e) Flexi Dividend Option** ** both payout & reinvestment facilities Default Option Growth Option Minimum Application 1. Growth Option `1,000/- Amount/Subsequent Minimum Investment in 2. Dividend Option - `20,000/- and in multiples of `1/- under all the options. the same folio 3. Subsequent Minimum Investment Amount is `1,000/- and in multiples of `1/- Benchmark Index CRISIL Composite Bond Fund Index Name of the Fund Amandeep Chopra (Managing the Scheme since October 2003) Manager Performance of the UTI Bond Fund scheme as on 31 January, 2017 Compounded Crisil Comp. Scheme Absolute Returns for the last 5financial years Annualised Bond Fund Returns (%) 20 Returns* Index (%) Last 1 year Last 3 years Last 5 years Since Inception 8.95 NA * Computed on compounded annualized basis using NAV of Growth option. Past performance may or may not be sustained in future. returns (%) UTI-Bond Fund (%) CRISIL Comp. Bond Index (%) Top 10 holdings by issuers and sectors (31 st January 2017) UTI-Bond Fund - Top 10 holdings (Debt Issuer wise) Serial No Issuer Name % of NAV 1 Government of India Reliance Utilities & Power Pvt Ltd Reliance Jio Infocomm Ltd HPCL Mittal Energy Ltd State Govt Total

7 UTI-Bond Fund - Top 10 holdings Debt Sectoral Allocation Serial No Sector % of NAV 1 Sovereign NCA/Reverse Repo/CBLO/Others Energy Telecom 4.28 Total Portfolio Turnover Ratio Portfolio Turnover Ratio as on : Sharpe Ratio Period to : Expenses of the Scheme Entry load (As % of NAV) Exit Load (As % of NAV) (i) Load Structure NIL NIL (ii) Recurring expenses First `100 crores 2.25% Actual expenses for the period Next `300 crores 2.00% to : 1.28% Next `300 crores 1.75% Balance 1.50% Dividend Policy Dividend distribution, if any, under the Dividend Option of the scheme/s will be made subject to availability of distributable surplus at such intervals as is indicated under the scheme or as may be decided by UTI AMC and approved by the Trustees from time to time. Under the Quarterly/Half Yearly & Annual Dividend Options, it is envisaged to declare dividends on a quarterly/ half yearly & annual basis respectively subject to availability of distributable surplus computed in accordance with SEBI Regulations. Under the Flexi Dividend Option dividend is proposed to be declared at such frequencies as may be decided by UTI AMC Ltd and approved by the Trustees from time to time, subject to availability of distributable surplus computed in accordance with SEBI Regulations. However, under all the dividend options, there is no assurance or guarantee to the unit holders, as to the rate and frequency of declaration of dividend. UTI AMC Ltd./Trustees reserves the right to declare or not to declare dividend at any frequency, as it may deem fit, under these Options. Number of folios and Number of Folios Asset Under Management (AUM) Asset Under Management 32,277 ` Crore (AUM) as on 31st January (AAUM as on 31/01/2017) 2017 Eligible Investors (a) An application for issue of units can be made by any resident or non-resident Indian as well as nonindividuals (not being OCBs) as indicated below: (i) a resident individual or an NRI or person of Indian origin residing abroad either singly or jointly with another or upto two other individuals on joint/anyone or survivor basis. An individual may make an application in his personal capacity or in his capacity as an officer of a Government or of a Court, (ii) a parent, step-parent or other lawful guardian on behalf of a resident or a NRI minor. Units can be held on Joint or Anyone or Survivor basis, (iii) a Hindu Undivided Family both resident and non-resident, (iv) a body corporate including a company formed under the Companies Act, 1956 [replaced by The Companies Act, 2013 (No.18 of 2013)] or established under State or Central Law for the time being in force, (v) a bank including a scheduled bank, a regional rural bank, a co-operative bank etc, (vi) an eligible trust including Private Trust being irrevocable trust and created by an instrument in writing, (vii) a society as defined under the scheme, (viii) a Financial Institution, (ix) an Army/Navy/Air Force/Paramilitary Fund, (x) a partnership firm, (xi) Foreign Portfolio Investor (FPI) as defined under Regulation 2(1)(h) of Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014; b) An individual for the benefit of another individual who is a mentally handicapped person, can also invest under UTI Bond Fund (c) Applications for purchase of units shall be made by such persons as are duly authorised in this behalf by the charter of establishment, rules and regulations, etc., governing the specified investors. (d) Applications for units shall be accompanied by such documents as the UTI AMC may prescribe in this behalf from time to time. Subject to the Regulations, the Sponsors, the Mutual Funds managed by them, their associates and the AMC may acquire units of the scheme. The AMC shall not be entitled to charge any fees on its investments in the scheme. 7

8 The fund reserves the right to include/exclude, new/existing categories of investors to invest in the scheme from time to time, subject to SEBI Regulations, if any. Subject to the Regulations, the Trustee/AMC may reject any application received, in case the application is found invalid/incomplete or for any other reason at the Trustee s / AMC s Sole discretion. Investment by Individuals Foreign Nationals For the purposes of carrying out the transactions by Foreign Nationals in the units of the Schemes of UTI Mutual Fund, 1. Foreign Nationals shall be resident in India as per the provisions of the Foreign Exchange Management Act, Foreign Nationals are required to comply (including taking necessary approvals) with all the laws, rules, regulations, guidelines and circulars, as may be issued/applicable from time to time, including but not limited to and pertaining to anti money laundering, Know Your Customer (KYC), income tax, foreign exchange management (the Foreign Exchange Management Act, 1999 and the Rules and Regulations made thereunder) including in all the applicable jurisdictions. UTI AMC reserves the right to amend/terminate this facility at any time, keeping in view business/operational exigencies. Overseas Corporate Bodies (OCBs) are not allowed to invest in units of any of the schemes of UTI MF. Please refer to SID & SAI for details. Investment by other Overseas Investors Neither the SID nor the units of Schemes have been registered in any jurisdiction including the United States of America No persons receiving a copy of such SID or any accompanying application form in such jurisdiction may treat the said SID or such application form as constituting an invitation to them to subscribe for units, nor should they in any event use any such application form, unless in the relevant jurisdiction such an invitation could lawfully be made to them and such application form could lawfully be used without compliance with any registration or other legal requirements For further details as to who can invest, please refer to the SID of the scheme. Facilities Offered 1. Systematic Investment Plan (SIP) / Micro SIP 2. Systematic Withdrawal Plan (SWP) 3. Systematic Transfer Investment Plan (STRIP) (Available as Source & Destination Scheme) 4. Dividend Transfer Plan (DTP) Additional Facilities Under the SIP facility, the following additional facilities are available viz. Step up facility, Facility to switch from under SIP one eligible scheme to another eligible scheme and Any Day SIP. For further details on the above facilities under Systematic Investment Plan (SIP), please refer to Addendum No. 38/15-16 dated 16th September Investment Objective Asset Allocation Pattern of the scheme Investment Strategy Comparison with existing schemes UTI-Dynamic Bond Fund The investment objective of the scheme is to generate optimal returns with adequate liquidity through active management of the portfolio, by investing in debt and money market instruments. However, there can be no assurance that the investment objective of the scheme will be realized. Indicative Allocation Types of instruments Risk profile (% of Net Assets) Money Market, Debentures and Securitised Debt Minimum - 0% Maximum - 99% Medium to Low with residual maturity of less than one year Debt Instruments including Securitised Debt* with Minimum - 1% Maximum - 100% Medium maturity more than one year *Debt Securities will also include Securitised Debt, which may go up to 100% of the portfolio. The Fund may use derivative instruments like Stock/Index Futures, Interest Rate Swaps and Forward Rate Agreements or such other derivative instruments as may be introduced from time to time for the purpose of hedging and portfolio balancing, within a permissible limit of 50% of portfolio, which may be increased as permitted under the Regulations and guidelines from time to time. Total investments in debt, money market instruments, units of mutual fund scheme and gross notional exposure in derivatives shall not exceed 100% of the net assets of the scheme. UTI-Dynamic Bond Fund will be an innovative long term investment option that provides the much needed flexibility to counter a dynamic environment by actively managing its portfolio in line with the evolving interest rate scenario. It has the ability to mimic a Cash Fund when interest rates are rising thereby preserving capital and it can generate the attractive returns of an Income Fund when interest rates are declining. It will be a fund which could be positioned between a short term fund and a medium/long term fund. UTI Dynamic Bond Fund will be an aggressively managed Fund taking active duration calls. 8

9 Plans and Options In addition to the Existing Plan, there is a Direct Plan. Both the Plans offer following options: (a) Growth Option (b) Quarterly Dividend Option** (c) Half Yearly Dividend Option** (d) Annual Dividend Option** (e) Flexi Dividend Option** ** both payout & reinvestment facilities Minimum Application Amount/Subsequent Minimum Investment in the same folio/ Minimum Redemption Amount Benchmark Index Name of the Fund Manager Performance of the scheme as on 31 January, 2017 Default Option Growth Option `10,000/- and in multiples of `1/- under both the options. Subsequent Minimum Investment Amount is `1,000/- and in multiples of `1/- thereafter under a folio. Minimum amount of redemption/switches is `1,000/- and in multiples of `1/-. CRISIL Composite Bond Fund Index Amandeep Chopra (Managing the Scheme since February 2012) Compounded Annualised Returns* Scheme Returns (%) UTI-Dynamic Bond Fund CRISIL Comp. Bond Fund Index (%) 20 Absolute Returns for the last 5 financial year Last 1 year Last 3 years Last 5 years Since Inception * Computed on compounded annualized basis using NAV of Growth option. Past performance may or may not be sustained in future. returns (%) UTI-Dynamic Bond Fund (%) CRISIL Comp. Bond Index (%) Top 10 holdings by issuers and sectors (31 st January 2017) UTI-Dynamic Bond Fund - Top 10 holdings- (Debt Issuer wise) Serial No Issuer Name % of NAV 1 Government of India Reliance Utilities & Power Pvt Ltd Rural Electrification Corporation Ltd State Govt 0.03 Total UTI-Dynamic Bond Fund - Top 10 holdings Debt Sectoral Allocation Serial No Issuer Name % of NAV 1 Sovereign NCA/Reverse Repo/CBLO/Others Energy Financial Services 0.08 Total Portfolio Turnover Ratio Portfolio Turnover Ratio: Sharpe Ratio Period to : Expenses of the Scheme Entry load (As % of NAV) Exit Load (As % of NAV) (i) Load Structure Nil <=365 days % > 365 days - NIL (ii) Recurring expenses First `100 crores 2.25% Next `300 crores 2.00% Next `300 crores 1.75% Balance 1.50% Actual expenses for the period to : 1.35% 9

10 Dividend Policy Number of folios and Asset Under Management (AUM) as on 31st January 2017 Eligible Investors Dividend distribution, if any, under the Dividend Option of the scheme will be made subject to availability of distributable surplus at such intervals as is indicated under the scheme or as may be decided by UTI AMC and approved by the Trustees from time to time. Under the Quarterly/Half Yearly & Annual Dividend Options, it is envisaged to declare dividends on a quarterly/ half yearly & annual basis respectively subject to availability of distributable surplus computed in accordance with SEBI Regulations. Under the Flexi Dividend Option dividend is proposed to be declared at such frequencies as may be decided by UTI AMC Ltd and approved by the Trustees from time to time, subject to availability of distributable surplus computed in accordance with SEBI Regulations. However, under all the dividend options, there is no assurance or guarantee to the unit holders, as to the rate and frequency of declaration of dividend. UTI AMC Ltd./Trustees reserves the right to declare or not to declare dividend at any frequency, as it may deem fit, under these Options. Number of Folios Asset Under Management (AUM) `1,363.21Crore (AAUM as on 31/01/2017) (a) An application for issue of units can be made by any resident or non-resident Indian as well as non-individuals (not being OCBs) as indicated below: (i) a resident individual or an NRI or person of Indian origin residing abroad either singly or jointly with another or upto two other individuals on joint/anyone or survivor basis. An individual may make an application in his personal capacity or in his capacity as an officer of a Government or of a Court, (ii) a parent, step-parent or other lawful guardian on behalf of a resident or a NRI minor. Units can be held on Joint or Anyone or Survivor basis, (iii) a Hindu Undivided Family both resident and non-resident, (iv) a body corporate including a company formed under the Companies Act, 1956 [replaced by The Companies Act, 2013 (No.18 of 2013)] or established under State or Central Law for the time being in force, (v) a bank including a scheduled bank, a regional rural bank, a co-operative bank etc, (vi) an eligible trust including Private Trust being irrevocable trust and created by an instrument in writing, (vii) a society as defined under the scheme, (viii) a Financial Institution, (ix) an Army/Navy/Air Force/Paramilitary Fund, (x) a partnership firm, (xi) Foreign Portfolio Investor (FPI) as defined under Regulation 2(1)(h) of Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014; (xii) an association of persons or body of individuals whether incorporated or not, (xiii) Mutual Funds registered with SEBI, (xiv) Scientific and Industrial Research Organisation, (xv) Multilateral Funding Agencies / Bodies Corporate incorporated outside India with the permission of the Government of India / Reserve Bank of India, (xvi) Other schemes of UTI Mutual Fund subject to the conditions and limits prescribed by SEBI Regulations, (xvii) Such other individuals / institutions / body corporate etc., as may be decided by the AMC from time to time, so long as wherever applicable they are in conformity with SEBI Regulations. (b) Applications for purchase of units shall be made by such persons as are duly authorised in this behalf by the charter of establishment, rules and regulations, etc., governing the specified investors. (c) Applications for units shall be accompanied by such documents as the UTI AMC may prescribe in this behalf from time to time. (d) Subject to the Regulations, the Sponsors, the Mutual Funds managed by them, their associates and the AMC may acquire units of the scheme. The AMC shall not be entitled to charge any fees on its investments in the scheme. The fund reserves the right to include/exclude, new/existing categories of investors to invest in the Scheme from time to time, subject to SEBI Regulations, if any. Subject to the Regulations, the Trustee/AMC may reject any application received, in case the application is found invalid/incomplete or for any other reason at the Trustee s / AMC s Sole discretion. Investment by Individuals Foreign Nationals For the purposes of carrying out the transactions by Foreign Nationals in the units of the Schemes of UTI Mutual Fund. 1. Foreign Nationals shall be resident in India as per the provisions of the Foreign Exchange Management Act,

11 2. Foreign Nationals are required to comply (including taking necessary approvals) with all the laws, rules, regulations, guidelines and circulars, as may be issued/applicable from time to time, including but not limited to and pertaining to anti money laundering, Know Your Customer (KYC), income tax, foreign exchange management (the Foreign Exchange Management Act, 1999 and the Rules and Regulations made thereunder) including in all the applicable jurisdictions. UTI AMC reserves the right to amend/terminate this facility at any time, keeping in view business/operational exigencies. Overseas Corporate Bodies (OCBs) are not allowed to invest in units of any of the schemes of UTI MF. Please refer to SID & SAI for details. Investment by other Overseas Investors Neither the SID nor the units of Scheme have been registered in any jurisdiction including the United States of America. No persons receiving a copy of such SID or any accompanying application form in such jurisdiction may treat the said SID or such application form as constituting an invitation to them to subscribe for units, nor should they in any event use any such application form, unless in the relevant jurisdiction such an invitation could lawfully be made to them and such application form could lawfully be used without compliance with any registration or other legal requirements For details as to who can invest, please refer to the SID of the scheme. Facilities Offered 1. Systematic Investment Plan (SIP) 2. Systematic Transfer Investment Plan (STRIP) (Available as Source & Destination Scheme) Additional Facilities Under the SIP facility, the following additional facilities are available viz. Step up facility, facility to switch from under SIP one eligible scheme to another eligible scheme and Any Day SIP. For further details on the above facilities under Systematic Investment Plan (SIP), please refer to Addendum No. 38/15-16 dated 16th September Investment Objective Asset Allocation Pattern of the scheme Plans/Options UTI Fixed Maturity Plan (UTI-FMP) The investment objective of the Scheme and Plans launched thereunder is to seek regular returns by investing in a portfolio of fixed income securities normally maturing in line with the time profile of the respective Plans, thereby enabling the investors to nearly eliminate interest rate risk by remaining invested in the Plan till the Maturity / Final Redemption. However there can be no assurance that the investment objective of the Scheme will be achieved. The Plans do not guarantee / indicate any returns. Proportion % of corpus Types of instruments Max Minimum Likely Upto Debt Securities and Money Market Securities (including Call Money, 20% 80% 100% reverse Repos) with residual average maturity of equal to or less than 410 days (or have put options within a period not exceeding 410 days) and including Securitised Debt. Debt instruments with residual maturity of more than 410 days. 20% 80% The above stated percentages are only indicative and not absolute. 1. In respect of Quarterly Plans, the investments would be predominantly in Money Market Securities (including Call money, reverse Repos) and Debt Securities including Government Securities with residual average maturity of equal to or less than 100 days (or have put options within a period not exceeding 100 days). In respect of Half-Yearly Plans, the investments would be predominantly in Money Market Securities (including Call money, reverse Repos) and Debt Securities including Government Securities with residual average maturity of equal to or less than 200 days (or have put options within a period not exceeding 200 days). In respect of Yearly Plans, the investments would be predominantly in Money Market Securities (including Call money, reverse Repos) and Debt Securities including Government Securities with residual average maturity of equal to or less than 410 days (or have put options within a period not exceeding 410 days). 2. Asset Allocation under the scheme would be in line with SEBI guidelines on investment in securities. Each Series of the Fixed Maturity Plan shall offer Regular Plan and *Direct Plan having both Growth and Dividend Options with Dividend Payout and Dividend Reinvestment facility (as given in SID). In case of valid applications received, without indicating any choice of the Option, it would be considered as Growth option and processed accordingly. In case dividend option is chosen as the Option but the periodicity (Quarterly/Half-Yearly/ Yearly) is not mentioned/indicated in the Application Form, then the default dividend option will be the Quarterly Dividend Option Schedule of UTI-Fixed Maturity Plan and details of the FMPs proposed to be launched under each Series viz., Plans/Options available there under and Fixed Maturity / Redemption Dates are as under: 11

12 Quarterly Series Half Yearly Series Yearly Series i) Regular Plan a) Dividend Option b) Growth Option ii) Direct Plan a) Dividend Option b) Growth Option i) Regular Plan a) Dividend Option b) Growth Option ii) Direct Plan a) Dividend Option b) Growth Option i) Regular Plan a) Dividend Option b) Growth Option ii) Direct Plan a) Dividend Option b) Growth Option Fixed Maturity Series Options under each FMP Duration of the FMP New Fund Offer Period* Fixed Maturity / Redemption Date Identification Number Quarterly Series (QFMP) Growth and Dividend having Dividend Reinvestment facility 94 days For a period not exceeding 7 business days (or such number of days not exceeding 15 days) at the end of which allotment shall be made. The Face value of the unit is ` 10/-. 95 th day from the date of closure of the Offer Period of the Plan QFMP (Month/ Year-Plan number) Half-Yearly Series (HFMP) Growth and Dividend having Dividend Reinvestment facility 186 days For a period not exceeding 7 business days (or such number of days not exceeding 15 days) at the end of which allotment shall be made. The Face value of the unit is ` 10/ th day from the date of closure of the Offer Period of the Plan HFMP (Month/ Year) Yearly Series (YFMP) Growth and Dividend having Dividend Reinvestment facility 396 days For a period not exceeding 7 business days (or such number of days not exceeding 15 days) at the end of which allotment shall be made. The Face value of the unit is ` 10/ th day from the date of closure of the Offer Period of the Plan YFMP (Month/ Year) The Scheme envisages the launch of the following Fixed Maturity Plans. Name of Series Date of launch Date of closure* Quarterly Series having a duration of 94 days 1 st of every month 16 th of every month 15 th of that month Last business day of that month Half-Yearly Series having a duration of 186 days 1 st of every month 25 th of that month Minimum Application Amount Benchmark Index Name of the Fund Manager Expenses of the Scheme (i) Load Structure (ii) Recurring expenses Yearly Series having a duration of 396 days 16 th of every month Last business day of that month *New Fund Offer period of the schemes will be as per SEBI guidelines which is currently restricted to a maximum 15 days. The units of each plan of the scheme will be listed on the National Stock Exchange (NSE) and/or any other stock exchange(s) as may be decided by UTI AMC, after the closure of the New Fund Offer (NFO) period. Investors will be able to enter & exit the fund through transactions in the Secondary Market. For further details about Plans and Options, please refer to SID. The minimum amount of investment under both the Plans is `10,000/- and in multiples of `10/-thereafter. No comparable benchmark available. Sunil Patil (Managing the Scheme since August 2014) Entry Load : Nil Exit Load : Nil at Maturity (Redemption is not permitted before maturity as the scheme will be listed on a Stock Exchange) First `100 crores 2.25% Actual expenses for the previous Next `300 crores 2.00% financial year of UTI-FMP (YFMP/03/14): 0.24% Next `300 crores 1.75% Balance 1.50% 12

13 Dividend Policy Eligible Investors Under the dividend option, it is proposed to declare dividend, subject to availability of distributable surplus, on or before the Maturity Date / Final Redemption Date of the respective Plans or such other day / frequency as may be decided by the Trustees, as computed in accordance with SEBI Regulations. The following qualified persons (subject to, wherever relevant, purchase of units of mutual funds being permitted under respective constitutions, and relevant statutory regulations) are eligible and may apply for subscription to the Units of the Scheme a. Resident Adult Individuals either singly or jointly (not exceeding three), b. Minors through parent/lawful guardian. Units can be held on Joint or Anyone or Survivor basis, c. Companies, Bodies Corporate, Public Sector Undertakings, Private Trusts, Association of Persons or Bodies of Individuals and Societies registered under the Societies Registration Act, 1860 (so long as the purchase of Units is permitted under the respective constitutions), d. Partnership Firms, e. Karta of Hindu Undivided Family (HUF), f. Banks and Financial Institutions, g. Religious and Charitable Trusts, Wakfs or Endowments and Registered Societies (including Registered Co-operative Societies) (subject to receipt of necessary approvals as required), h. Non-Resident Indians / Persons of Indian Origin residing abroad (NRIs) on repatriation and non repatriation basis, i. Foreign Portfolio Investor (FPI) as defined under Regulation 2(1)(h) of Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014, j. Army, Air Force, Navy and other para-military units and bodies created by such institutions, k. Scientific and Industrial Research Organisations, l. International Multilateral Agencies / Bodies Corporate incorporated outside India with the permission of the Government of India / Reserve Bank of India, m. Mutual Funds registered with SEBI including other schemes of UTI Mutual Fund, n. Other Associations, Institutions, Bodies, etc. who are permitted to invest in this Scheme as per their respective constitution, o. Subject to the Regulations, the Sponsors, the Mutual Funds managed by them, their associates and the AMC may acquire units of the scheme. The AMC shall not be entitled to charge any fees on its investments in the scheme. Subject to the Regulations, the Trustee/AMC may reject any application received, in case the application is found invalid/incomplete or for any other reason at the Trustee s/amc s Sole discretion. Investment by Individuals Foreign Nationals For the purposes of carrying out the transactions by Foreign Nationals in the units of the Schemes of UTI Mutual Fund, 1. Foreign Nationals shall be resident in India as per the provisions of the Foreign Exchange Management Act, Foreign Nationals are required to comply (including taking necessary approvals) with all the laws, rules, regulations, guidelines and circulars, as may be issued/applicable from time to time, including but not limited to and pertaining to anti money laundering, Know Your Customer (KYC), income tax, foreign exchange management (the Foreign Exchange Management Act, 1999 and the Rules and Regulations made thereunder) including in all the applicable jurisdictions. UTI AMC reserves the right to amend/terminate this facility at any time, keeping in view business/operational exigencies. Overseas Corporate Bodies (OCBs) are not allowed to invest in units of any of the schemes of UTI MF. Please refer to SID & SAI for details. Investment by other Overseas Investors Neither the SID nor the units of Scheme have been registered in any jurisdiction including the United States of America. No persons receiving a copy of such SID or any accompanying application form in such jurisdiction may treat the said SID or such application form as constituting an invitation to them to subscribe for units, nor should they in any event use any such application form, unless in the relevant jurisdiction such an invitation could lawfully be made to them and such application form could lawfully be used without compliance with any registration or other legal requirements. For further details as to who can invest, please refer to the SID of the scheme. UTI-Floating Rate Fund Investment Objective To generate regular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments, fixed rate debt / money market instruments swapped for floating rate returns. The Scheme may also invest a portion of its net assets in fixed rate debt securities and money market instruments. However there can be no assurance that the investment objective of the Scheme will be achieved. The Scheme does not guarantee / indicate any returns. 13

14 Asset Allocation Pattern of the scheme Investment Strategy Comparison with existing schemes Types of instruments Normal Allocation (% of Net Assets) Risk Profile Fixed Rate Debt Securities 0-35 Low to Medium (including Securitised Debt, Money Market Instruments & Floating Rate Debt Instruments swapped for fixed rate returns) Floating Rate Debt Securities Low to Medium (including Securitised Debt, Money Market Instruments & Fixed Rate Debt Instruments swapped for floating rate returns) The above stated percentages are only indicative and not absolute. Under normal circumstances at least 65% of the total portfolio will be invested in floating rate debt securities / money market instruments. This may be by way of direct investment in floating rate assets or fixed rate assets swapped for floating rate returns by using derivatives. It is the intention of the Scheme that the investments in securitised debt will not, normally exceed 60% of the net assets of the plan. The Scheme may have an exposure of upto 90% of its net assets in foreign securities. The AMC with a view to protecting the interests of the investors may increase exposure in foreign securities upto 100% as deemed fit from time to time. However, the exposure in foreign securities would not exceed the maximum amount permitted from time to time. For further details on Asset allocation, please refer to SID. The Scheme will have an appropriate mix of Fixed Rate Debt / Money market securities and Floating Rate Debt/ Money market securities (subject to the investment pattern given above) depending on the prevailing market outlook to generate stable returns. Debt securities include, but are not limited to, debt obligations of Central, State or local governments, statutory bodies, banks, public sector undertakings, development financial institutions, private sector corporate entities and securitised debt. Money market securities include, but are not limited to, treasury bills, government securities with unexpired maturity of one year or less, commercial paper, certificate of deposit, commercial bills arising out of genuine trade transactions (accepted / co-accepted by banks), fixed deposits with scheduled commercial banks, call/notice money, permitted securities under repo / reverse repo agreement, usance bill and any other like instruments as may be permitted by RBI / SEBI from time to time. The UTI Floating Rate Fund aims at generating regular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments, fixed debt. This fund also offers a moderate level of defense against volatile debt markets. The fund is positioned as Ultra Short Term category fund with low volatility stable returns as investment strategy. In terms of risk-return matrix, it is less risky than Short Term category of funds and is comparable with UTI Treasury Advantage Fund being slightly more risky than Liquid funds. Though the fund has the flexibility to invest across maturities, it generally invests in papers so that average portfolio maturity is less than 300 days. Plans and Options 1. UTI-Floating Rate Fund (Short Term Plan) Regular Plan 2. UTI-Floating Rate Fund (Short Term Plan) Direct Plan Both the plans offer following options: (a) Growth Option (b) Daily Dividend Reinvestment Option (c) Weekly Dividend Reinvestment Option (d) Fortnightly Dividend Option** (e) Monthly Dividend Option** (f) Quarterly Dividend Option** (g) Half Yearly Dividend Option** (h) Annual Dividend Option** (i) Flexi Dividend Option** Minimum Application Amount / Subsequent Minimum Investment in the same folio / Minimum Redemption Amount Benchmark Index Name of the Fund Managers ** both payout & reinvestment facilities Default Option - Growth Option Minimum amount of initial investment is `5000/- and in multiples of `1/- thereafter under both the Plans. Subsequent Minimum Investment Amount is `1,000/- and in multiples of `1/- thereafter under a folio. Minimum redemption amount `1,000/- and in multiples of `1/-. CRISIL Liquid Fund Index Sudhir Agrawal (Managing the Scheme since July 2012) & Ritesh Nambiar (Managing the Scheme since July 2015) 14