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In January 2003, The UTI Mutual Fund was founded as a mutual fund business that was registered with SEBI. The State Bank of India (SBI), Bank of Baroda (BoB), Punjab National Bank (PNB), the Life Insurance Corporation of India (LIC), and T Rowe Price Group Inc. are its five major institutional backers. In October 2020, the fund house debuted on stock exchanges.
Even though the UTI MF was founded in 2003, its mutual funds have been around since the 1980s when they were known as “Unit Trust of India.” In reality, one of India’s first mutual fund programmes was UTI Master Share, which was introduced in 1986. Assets Under Management (AUM) for the UTI Mutual Fund total about Rs. 2,26,197.98 billion (as of 31 May, 2022). It controls 5.86% of the market share for AUM in the sector.
- For investors with different risk tolerances, it offers more than 79 core mutual fund schemes.
- Of them, 27 are equity-based plans, 40 are loan plans, 8 are hybrid plans, and 4 are alternative plans (commodity, etc.)
- The business operates in 694 districts and provides service through 56,600 distributors and 163 banking centres.
- According to AUM, UTI Nifty 50 ETF, UTI Liquid Cash, and UTI Flexi Cap are the three most popular UTI MF products.
- The mission statement of the company is to “be the most recommended mutual fund.”
|Mutual Fund Name||UTI Mutual Fund|
|Founded||Nov 14, 2002|
|Trustee Organisation||UTI Trustee Company (P) Ltd|
|MD and CEO||Imtaiyazur Rahman|
|Compliance Officer||Somervel Gladston|
How to invest in UTI Mutual Fund Schemes?
- Through the UTI Mutual Fund website
- Through a distributor
Are UTI mutual fund schemes safe to invest in?
Mutual funds are market-related financial products. Investments in mutual funds are therefore constantly subject to market risks. Because of this, the asset management firm is unable to ensure the security of mutual fund investments. It’s important to remember that all Indian mutual funds are SEBI-regulated, making them somewhat safer investment options than other market-linked vehicles. Additionally, research the market and thoroughly examine a fund’s prior performance before determining whether or not to participate in it.
Which UTI Mutual Fund scheme is the best for short-term investment?
Mutual funds do not have a universally applicable solution. Your level of risk tolerance, time horizon for investments, and financial objectives will determine if a given fund is appropriate for you. Having said that, debt mutual fund schemes are preferable if you wish to invest for the short term because they are less affected by market volatility. For instance, if the investment is for a few days, they may take into account overnight funds. Liquid funds are ideal for investments lasting up to three months. Instruments with an average maturity of between six and twelve months must be held by low duration funds. Additionally, securities with a one- to three-year maturity are held by short duration funds.
Are UTI mutual fund schemes tax-free?
Profits from mutual fund investments can be divided into two categories: short-term capital gains (STCG) and long-term capital gains (LTCG). The length of your investment will determine this. Taxes on mutual fund returns vary depending on the type and category of the fund. The table showing the tax rates for different kinds of mutual funds and capital gains is below:
|Mutual Fund Type||Holding Period||Type of capital gains tax||Tax Liability|
|Debt funds||Less than 36 months||STCG||As per the investor’s income tax slab rate|
|Equity-oriented||Less than 12 months||STCG||15%|
|Debt-oriented||Greater than 36 months||LTCG||20% with indexation|
|Equity-oriented||Greater than 12 months||LTCG||10% for amounts exceeding Rs 1 Lakh|
How can I cancel the ongoing SIP in a UTI Mutual Fund scheme?
- On Official app or website, click on the profile icon and select SIPs/MySIP option.
- In this section, you will see all the ongoing SIPs.
- Click on any SIP to open a detailed view.
- On the top right corner, click the three dots, which will take you to the Modify SIP screen.
- You will see the “Cancel this SIP” option below.
- Once you click it, you will receive an OTP.
- On entering the correct OTP, SIP will be cancelled.
How can I increase the SIP amount of an UTI mutual fund scheme?
- By starting a new investment with incremental SIP
- By opting for a top-up on your current SIP amount