UTI Asset Management Company Limited has launched the UTI Balanced Hybrid Fund, an open ended scheme built to hold shares and bonds in a roughly even split. The New Fund Offer opens on 14 August 2026 and closes on 28 August 2026.
UTI Mutual Fund designed the scheme to grow your money over the long run while generating some income, by running a balanced mix of equity and debt rather than leaning heavily on one side.
If a single fund handling the equity to debt mix sounds more convenient than piecing it together yourself, this New Fund Offer is worth a closer look.
UTI Balanced Hybrid Fund NFO details
Fund name | |
Fund type | Open ended hybrid scheme |
Category | Balanced Hybrid Fund |
Nature of scheme | Balanced equity-debt mix, no arbitrage permitted |
Benchmark | NIFTY 50 Hybrid Composite Debt 50:50 Index (Total Return variant) |
Fund managers | Ajay Tyagi and Kamal Gada (equity portion), Mr Anurag Mittal (debt portion) |
NFO opens | 14 August 2026 |
NFO closes | 28 August 2026 |
Allotment date | Not available |
Minimum investment | Rs 1,000, and in multiples of Re 1 thereafter |
Additional investment | Rs 1,000, and in multiples of Re 1 thereafter |
Minimum SIP amount | Rs 500 for daily, weekly and monthly SIPs; Rs 1,500 for quarterly SIPs |
NAV during NFO | Rs 10 per unit |
Risk level | High risk, per the fund’s own product labelling |
Stamp duty | 0.005% of transaction value, the standard rate on all Indian mutual fund purchases |
Entry load | Not applicable |
Exit load | Nil on first 10% of units redeemed within 12 months; 1% on the remainder within 12 months; nil after 12 months |
UTI Asset Management Company details
AMC name | UTI Asset Management Company Limited |
Assets under management | ₹3.93 lakh crore |
Website | |
Registered office | UTI Tower, ‘Gn’ Block, Bandra Kurla Complex, Bandra (East), Mumbai 400051 |
Contact number | 1800 266 1230 (toll free) or 022 6227 8000 |
Source: AMFI India, New fund offer: UTI Balanced Hybrid Fund
What has UTI Mutual Fund launched?
UTI Balanced Hybrid Fund sits inside the hybrid category, the group of mutual funds that mix shares and bonds in one portfolio. Balanced hybrid is a distinct sub-type: it differs from an aggressive hybrid fund, which must hold 65% to 80% in equity, and from a balanced advantage fund, which can swing between 0% and 100% in either asset class. This scheme sits between the two, with both equity and debt required to stay within a 40% to 60% band.
The stated objective is long term capital appreciation plus income, through a balanced portfolio of equity and debt instruments. Both portions are actively managed, with equity picks chosen for growth potential and the debt sleeve built around government securities, corporate bonds and money market instruments. Unlike some hybrid categories, no arbitrage is permitted here. The benchmark is the NIFTY 50 Hybrid Composite Debt 50:50 Index, mirroring the scheme’s own balanced structure.
How does the strategy work?
The fund managers decide, within the 40% to 60% limits for equity and debt, how much to hold in each based on market and rate conditions. If the mix drifts outside range, say after a sharp equity rally, they must rebalance within 30 days, so you are not left with an accidental equity heavy or debt heavy portfolio.
Step | What happens? |
1 | Money pooled during the NFO |
2 | Fund managers assess market and interest rate conditions |
3 | Equity allocated within the 40% to 60% band to selected shares |
4 | Debt allocated within the 40% to 60% band to bonds and money market instruments |
5 | Portfolio monitored against the permitted band |
6 | Rebalanced within 30 days if the allocation drifts outside the band |
Let’s understand through an example
Say you invest Rs 10,000 in the NFO at Rs 10 per unit and receive 1,000 units. If equity markets then rally and the equity portion rises above the 60% ceiling, the fund managers trim equity and add to debt, bringing the mix back within the 40% to 60% band. This runs in either direction, without you needing to do anything.
Portfolio allocation
Instrument | Minimum | Maximum |
Equity and equity related instruments | 40% | 60% |
Debt and money market instruments | 40% | 60% |
No arbitrage is permitted in this scheme. A residual portion may go into Infrastructure Investment Trusts, Gold ETFs, Silver ETFs and exchange traded commodity derivatives, within SEBI’s regulatory ceilings.
Investment strategy
Equity selection favours companies across market capitalisations that the managers expect to compound earnings over time, rather than a single theme. The debt side prioritises credit quality: government securities and higher rated corporate bonds form the core, with duration set by the rate outlook.
The scheme’s defining feature is its rebalancing discipline. Since both sides must stay within the 40% to 60% band, managers cannot let one run away or shrink unchecked, and the fund does not lean on arbitrage. Liquidity comes from shorter duration and money market instruments in the debt sleeve.
Potential benefits
Potential benefit | Why does it matter? |
One fund for equity and debt | Saves you running two funds and rebalancing them yourself |
Built in rebalancing | The manager resets the mix within 30 days if it drifts outside band |
Moderated swings versus a pure equity fund | Debt can cushion some of the stock market’s ups and downs |
Room for InvITs, Gold and Silver ETFs | Small residual allocations add a further layer of diversification |
Key risks
Risk | What does it mean? |
Market risk | Share prices in the equity portion can fall with the market |
Interest rate risk | Bond prices in the debt portion can fall as rates rise |
Credit risk | A bond issuer in the debt portion could delay or default on payment |
Derivative risk | Derivatives used for hedging and rebalancing carry their own risks |
Who may consider this fund?
- Investors wanting one fund for both equity and debt exposure
- Investors with a horizon of five years or more
- Investors comfortable with a high risk, moderate volatility profile
- Investors who want built in rebalancing rather than doing it themselves
Who may not find it suitable?
- Investors needing the money within the next one to two years
- Investors seeking capital protection or guaranteed returns
- Investors wanting a pure equity fund for maximum growth potential
- Investors uncomfortable with any use of derivatives in the portfolio
Comparison with traditional investment options
Fixed Deposit | Debt Mutual Fund | Hybrid Fund | Equity Mutual Fund | UTI Balanced Hybrid Fund | |
Risk | Low | Low to moderate | Moderate to high | High | High |
Return potential | Fixed, low | Low to moderate | Moderate | High | Moderate to high |
Volatility | None | Low | Moderate | High | Moderate to high |
Liquidity | Limited, penalty on early exit | High | High | High | High |
Investment horizon | Fixed term | Short to medium | Medium to long | Long | Long |
Suitable investor | Safety seeker | Conservative investor | Balanced investor | Growth seeker | Wants a balanced mix in one fund |
UTI Balanced Hybrid Fund Review by Zenith Finserve
UTI Balanced Hybrid Fund suits an investor with a horizon of five years or more who wants one fund for both equity and debt, rather than managing separate allocations. The 40% to 60% band still gives real equity exposure, so this remains a high risk investment, not a conservative one.
The built in rebalancing is the scheme’s main advantage: whichever side drifts out of range gets trimmed back within 30 days, without you needing to track it. This suits a diversification role within a wider portfolio, rather than someone seeking capital protection or maximum growth.
Weigh suitability against your goals, horizon and comfort with market swings before investing. If unsure, Zenith’s mutual fund advisors or its investment planning services can walk through it with you. Zenith Finserve follows a fiduciary, goal based approach.
How Zenith Financial Management can help
At Zenith Financial Management, we follow a process driven investment framework. We assess your goals, cash flows, risk profile, time horizon, existing investments, loans and tax situation before suggesting investments. We align our investment suggestions with your financial objectives and review them periodically to keep them suitable as your circumstances change.
Similar NFOs on Zenith
No directly comparable balanced hybrid NFO has been covered on Zenith yet. For related, though structurally different, hybrid reading, see Zenith’s coverage of the Jio BlackRock Prism Hybrid Long Short Fund NFO, a Specialised Investment Fund for sophisticated investors rather than a retail balanced hybrid scheme.
Frequently asked questions
When does the UTI Balanced Hybrid Fund NFO open and close?
The NFO opens on 14 August 2026 and closes on 28 August 2026.
What is the minimum investment in UTI Balanced Hybrid Fund?
Rs 1,000, and in multiples of Re 1 thereafter.
Is UTI Balanced Hybrid Fund NFO good to invest in?
Depends on your goals, horizon and risk comfort. It suits investors wanting one fund for a balanced mix over five years or more.
What does UTI Balanced Hybrid Fund invest in?
A balanced mix of equity and debt instruments, each kept within a 40% to 60% band.
Who manages UTI Balanced Hybrid Fund?
Mr Ajay Tyagi and Mr Kamal Gada manage the equity portion, and Mr Anurag Mittal manages the debt portion.
What is the exit load on UTI Balanced Hybrid Fund?
Nil on the first 10% of units redeemed within 12 months, 1% on the remainder redeemed within 12 months, and nil after 12 months.
Does UTI Balanced Hybrid Fund charge an entry load?
No. Entry load is not applicable, as with all Indian mutual funds.
Can I start a SIP in UTI Balanced Hybrid Fund?
Yes, once the scheme reopens. Minimum SIP is Rs 500 for daily, weekly and monthly plans, or Rs 1,500 for quarterly.
What is the benchmark for UTI Balanced Hybrid Fund?
The NIFTY 50 Hybrid Composite Debt 50:50 Index, mirroring the scheme’s balanced structure.
Is UTI Balanced Hybrid Fund a low risk investment?
No. It carries a high risk label, since a large part of the portfolio can sit in equities.
How is UTI Balanced Hybrid Fund different from an aggressive hybrid fund?
An aggressive hybrid fund holds 65% to 80% in equity, while this scheme keeps both equity and debt within a 40% to 60% band.
Does UTI Balanced Hybrid Fund use arbitrage strategies?
No. Arbitrage is specifically not permitted in this scheme.
