UTI-Fixed Term Income Fund

UTI-Fixed Term Income Fund – Series XVIII - I (400 Days) (A Close-ended Income Scheme) The product is suitable for investors who are seeking*: v Regular income for short term v Investment in Debt/Money Market Instrument/Govt. Securities v Low risk (Blue) * Investors should consult their financial advisers if in doubt about whether the product is suitable for them Note: Risk may be represented as: (BLUE) (YELLOW) (BROWN) investors understand that their investors understand that their investors understand that their principal will be at low risk principal will be at medium risk principal will be at high risk UTI Mutual Fund UTI Asset Management Company Limited UTI Trustee Company Private Limited Address of the Mutual Fund, AMC and Trustee Company: UTI Tower, Gn Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051. New Fund Offer Opens on : Monday, March 10, 2014 New Fund Offer Closes on : Tuesday, March 18, 2014 The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations) as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the AMC. The units offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document. The Scheme Information Document sets forth concisely the information about the scheme that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / UTI Financial Centres (UFCs) /Website / Distributors or Brokers. The Mutual Fund / AMC and its empanelled broker/s has not given and shall not give any indicative portfolio and indicative yield in any communication in any manner whatsoever. Investors are advised not to rely on any communication regarding indicative yield/portfolio with regards to the scheme The investors are advised to refer to the Statement of Additional Information (SAI) for details of UTI Mutual Fund, Tax and Legal issues and general information on www.utimf.com SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI, please contact your nearest UTI Financial Centre or log on to our website. The Scheme Information Document should be read in conjunction with the SAI and not in isolation. Please refer to NSE Disclaimer clause overleaf. This Scheme Information Document is dated February 17, 2014 UTI-FIXED TERM INCOME FUND – SERIES XVIII - I (400 DAYS) DISCLAIMER OF NSE As required, a copy of this Scheme Information Document has been submitted to National Stock Exchange of India Limited (hereinafter referred to as NSE). NSE has given vide its letter Ref No: NSE/LIST/227711-8 dated January 17, 2014 permission to the Mutual Fund to use the Exchange’s name in this Scheme Information Document as one of the stock exchanges on which the Mutual Fund’s units are proposed to be listed subject to, the Mutual Fund fulfilling various criteria for listing. The Exchange has scrutinized this Scheme Information Document for its limited internal purpose of deciding on the matter of granting the aforesaid permission to the Mutual Fund. It is to be distinctly understood that the aforesaid permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE; nor does it in any manner warrant, certify or endorse the correctness or completeness of any of the contents of this Scheme Information Document; nor does it warrant that the Mutual Fund’s units will be listed or will continue to be listed on the Exchange; nor does it take any responsibility for the financial or other soundness of the Mutual Fund, its sponsors, its management or any scheme of the Mutual Fund. Every person who desires to apply for or otherwise acquire any units of the Mutual Fund may do so pursuant to independent inquiry, investigation and analysis and shall not have any claim against the Exchange whatsoever by reason of any loss which may be suffered by such person consequent to or in connection with such subscription /acquisition whether by reason of anything stated or omitted to be stated herein or any other reason whatsoever.” 2 UTI-FIXED TERM INCOME FUND – SERIES XVIII - I (400 DAYS) TABLE OF CONTENTS Item No. Contents Page No. HIGHLIGHTS 4 I. INTRODUCTION A Risk Factors 5 B Requirement of minimum investors in the Scheme 7 C Definitions 7 D Due Diligence by the Asset Management Company 10 II. INFORMATION ABOUT THE SCHEME A Type of the Scheme 11 B What is the investment objective of the Scheme? 11 C How will the Scheme allocate its assets? 11 D Where will the Scheme invest? 14 E What are the Investment Strategies? 15 F Fundamental Attributes 16 G How will the Scheme Benchmark its performance? 16 H Who manages the scheme? 16 I What are the Investment Restrictions? 16 J How has the Scheme performed? 17 III. UNITS AND OFFER A New Fund Offer (NFO) 18 B Ongoing Offer Details 27 C Periodic Disclosures 32 D Computation of NAV 33 IV. FEES AND EXPENSES A New Fund Offer (NFO) Expenses 34 B Annual Scheme Recurring Expenses 34 C Load Structure 35 V. RIGHTS OF UNITHOLDERS 36 VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPEC- TIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS 36 IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY 3 UTI-FIXED TERM INCOME FUND – SERIES XVIII - I (400 DAYS) HIGHLIGHTS Investment Objective The scheme aims to generate returns by investing in a portfolio of fixed income securities matur- ing on or before the date of maturity of the scheme. However, the scheme does not guarantee / indicate any return. There is no assurance that the funds objective will be achieved. Liquidity During the New Fund Offer, the units of the scheme will be sold at the face value of `10/- per unit. Redemption will be done on maturity date at NAV based price of the scheme. As per SEBI guidelines, the AMC/Mutual Fund shall not redeem the units of the scheme before the date of maturity. The units of the scheme will be listed on National Stock Exchange (NSE), as may be decided by UTI AMC, after the closure of the New Fund Offer period. Investors will be able to enter and exit the scheme through transactions in the secondary market within five business days of allotment. Redemption / Maturity Redemption not permitted before maturity. The Scheme will have a Maturity Date / Final Redemption Date. The Scheme will compulsorily and without any further act by the Unitholder(s) be redeemed on the Maturity / Final Redemption Date. On Maturity / Final Redemption Date of the Scheme, the Units under the Scheme will be redeemed at the Applicable NAV. For Redemptions made on the Maturity Date / Final Redemp- tion Date, the AMC will not charge any Exit Load. Benchmark CRISIL Short Term Bond Fund Index is the benchmark. Entry/ Exit Load Entry Load: NIL, Redemption not permitted before maturity. For Redemptions made on the Maturity Date / Final Redemption Date, the AMC will not charge any Exit Load. Transparency/NAV Declaration of NAV on a daily basis within 5 business days from the date of allotment. Disclosure Minimum Application Minimum amount of investment is `5,000/- and in multiple of `10 /- under all the plans / options. Amount 4 UTI-FIXED TERM INCOME FUND – SERIES XVIII - I (400 DAYS) I. INTRODUCTION existing securities, rate of inflation etc. The extent of fall or rise in the prices is a function of the prevailing coupon A. RISK FACTORS rate, number of days to maturity of a security and the Standard Risk Factors: increase or decrease in the level of interest rates. The 1. Investment in Mutual Fund Units involves investment prices of Bonds/Central Government securities are also risks such as trading volumes, settlement risk, liquidity influenced by the liquidity in the financial system and/ risk, default risk including the possible loss of principal. or the open market operations (OMO) by RBI. Pressure 2. As the price / value / interest rates of the securities in on exchange rate of the Rupee may also affect security which the scheme invests fluctuates, the value of your prices. Such rise and fall in price of bonds/central investment in the scheme may go up or down. government securities in the portfolio of the schemes may influence the NAVs of the schemes as and when 3. Past performance of the Sponsors/AMC/Mutual Fund such changes occur. For a fixed term scheme, where does not guarantee future performance of the scheme. the maturity of the debt securities in the portfolio are in 4. UTI-Fixed Term Income Fund - Series XVIII - I (400 line with the maturity period of the respective schemes, days) (UTI-FTIF - Series XVIII-I (400 days)) is only the interest rate risk may not be there, if the investment the name of the scheme and does not in any manner is held upto maturity. indicate either the quality of the scheme or its future 13. Liquidity Risk: The Indian debt market is such prospects or returns. There may be instances where no that a large percentage of the total traded volumes dividend distribution could be made. on particular days might be concentrated in a few 5. The sponsors are not responsible or liable for any loss securities. Traded volumes for particular securities resulting from the operation of the scheme beyond the differ significantly on a daily basis.

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