Investment Objective and Approach

UTI Ultra Short Duration Fund aims to generate regular income through investment in a portfolio comprising substantially of floating rate debt/money market instruments and fixed rate debt/money market instruments. The fund focuses on debt & money market instruments such that the Macaulay duration of the portfolio is between 3 months - 6 months.

The fund follows a strategic approach to balance income generation with volatility management:

- The fund seeks to strike a harmonious balance between generating reasonable income and minimising volatility, accomplished through strategic investments in a well-structured portfolio composed of debt and money market instruments.

- It positions itself advantageously to seize yield fluctuations at the shorter end of the yield curve by meticulously managing its portfolio duration, which typically ranges from 3 to 6 months.

- The fund places significant emphasis on upholding a high degree of liquidity, thereby allowing for quick and efficient adjustments in response to market dynamics.

The investment strategy is designed for investors seeking:

- Reasonable returns coupled with liquidity in the short term

- Conservative investors with a horizon of 3 months and beyond

- Individuals exploring alternatives to traditional fixed-income avenues like bank deposits and bonds

Fund Managers

Ritesh Nambiar is the current fund manager of this mutual fund. However, recent information also indicates Anurag Mittal, who is a Chartered Accountant from the Institute of Chartered Accountants of India, started his career with Bank of America and worked at various firms including ICICI Prudential Life Insurance, Axis Mutual Fund, HDFC and IDFC before moving to UTI Mutual Fund as the Deputy Head - Fixed Income.

Key details about the fund management team:

- Mr. Nambiar is currently the Senior Vice President of UTI Mutual Funds and also serves as a Senior Fund Manager for UTI's Credit Risk Fund. He is credited with creating two of the most successful products of the UTIMF portfolio - the Ultra Short Term and Medium Term Mutual Funds.

- Mr. Nambiar has several years of experience in working with corporations like TransMarket Group and CRISIL Research where he worked in fixed income valuation, Global Fixed Income Variation and Index creation. He completed his BMS and MMS in Finance from the University of Mumbai and is also a CFA Charterholder.

About the Fund House (AMC)

UTI Mutual Fund has a rich legacy in the Indian mutual fund industry:

Company Background:

- UTI Mutual Fund was launched after carving out the former Unit Trust of India by repealing the Unit Trust of India Act 1963. UTI was subsequently bifurcated into UTI Mutual Fund and SUUTI. It was registered with SEBI on 01 February 2003.

- UTI has four sponsors namely the State Bank of India (SBI), Life Insurance Corporation of India (LIC), Punjab National Bank and the Bank of Baroda. It counts UTI Trustee Company Private Limited as the trustee.

Scale and Operations:

- AUM ₹339,982.90 Cr as of July 2025

- No. of Schemes 259

- The fund has nearly 11 million investors and there are over 250 plans currently operational

Fund Specific Details:

- The AUM of UTI Ultra Short Duration Fund is ₹4551.44 Cr as of 4th July 2025

- The expense ratio of UTI Ultra Short Duration Fund Plan is 0.35 as of 4th July 2025

- The minimum SIP amount to invest in this scheme is ₹500

Should I Invest in UTI Ultra Short Duration Fund?

UTI Ultra Short Duration Fund can be suitable for specific investor profiles and objectives:

Ideal For:

- Those in search of reasonable returns coupled with liquidity in the short term. It particularly suits conservative investors with a horizon of 3 months and beyond.

- They are suitable to park the amount you have set aside to meet any emergency needs or any surplus money that you don't need for the next six months up to 1-1.5 years.

- Those who want slightly better returns and can withstand a little more volatility can consider ultra-short duration funds.

Key Considerations:

- "Ultra-short Duration debt funds predominantly invest in bonds maturing in three to six months. They aim to earn slightly better returns over liquid funds but with a marginally higher degree of volatility."

- The risk of incurring a loss in these funds over the said timeframe is low but they do not guarantee returns or safety of capital. They are geared to earn slightly better returns than what you can get from a bank account or short duration fixed deposit, but are not suitable to build wealth in the long run.

Performance Metrics:

- The fund's trailing returns over different periods are 7.29% (1 year), 6.47% (3 year), 6.09% (5 year)

- This fund has generated average returns. However, whatever returns that the fund delivers, it does so with exceptional consistency.

FAQs

What is today's NAV of UTI Ultra Short Duration Fund?

The NAV of UTI Ultra Short Duration Fund on Jul 03 2025, is ₹4556.9809 The NAV changes daily based on market conditions.

What is the AUM of UTI Ultra Short Duration Fund?

The AUM of UTI Ultra Short Duration Fund is ₹4350.91 crore Fund houses update AUM monthly rather than daily.

What is the expense ratio of UTI Ultra Short Duration Fund?

The expense ratio of UTI Ultra Short Duration Fund Plan is 0.35 as of 4th July 2025 This represents the annual charges for fund management.

What are the returns of UTI Ultra Short Duration Fund since inception?

Returns since inception are 6.84% p.a. The fund was launched in August 2003, providing over 21 years of track record.

What is the minimum SIP amount to invest in UTI Ultra Short Duration Fund?

The minimum SIP amount to invest in this scheme is ₹500 This allows investors to start with small regular investments.

How do I invest in UTI Ultra Short Duration Fund?

You can invest through Allvest platform, AMC website, or registered distributors. Complete your KYC documentation and choose between lumpsum or SIP investment options.

How to start a SIP in UTI Ultra Short Duration Fund?

Log into Allvest platform, select the fund, choose SIP option, set investment amount (minimum ₹500), select frequency and start date. Ensure auto-debit mandate is set up.

How do I automate an SIP in UTI Ultra Short Duration Fund?

Set up auto-debit mandate through Allvest platform linking your bank account. This ensures automatic monthly deductions for seamless SIP investments without manual intervention.

How can I withdraw/redeem my investment in UTI Ultra Short Duration Fund?

Submit redemption request through Allvest platform or AMC website. The fund has an expense ratio of 0.94 and typically processes redemptions within 1-3 working days with no exit load.