What is UTI Mutual Fund
UTI Mutual Fund is one of the prominent asset management companies (AMCs) in India. UTI Mutual Fund is a subsidiary of UTI Asset Management Company Limited (UTI AMC) and is regulated by the Securities and Exchange Board of India (SEBI). It offers a wide range of mutual fund schemes to cater to the diverse investment needs of investors in India. UTI Mutual Fund has a long and reputable history in the Indian mutual fund industry.
Key highlights and information about UTI Mutual Fund:
1. Establishment: UTI Mutual Fund was established in 1963 as the Unit Trust of India (UTI). It was one of the earliest mutual fund houses in India.
2. Range of Schemes: UTI Mutual Fund offers a diverse range of mutual fund schemes, including equity funds, debt funds, hybrid funds, tax-saving funds, and more.
3. Fund Managers: UTI Mutual Fund has a team of experienced fund managers responsible for managing its various schemes. These fund managers make investment decisions based on market conditions and the investment objectives of each scheme.
4. Investment Philosophy: UTI Mutual Fund follows a customer-centric approach and aims to provide attractive investment opportunities while focusing on risk management.
5. Investor Services: UTI Mutual Fund provides various investor services, including online access to accounts, fund performance updates, and customer support.
6. Regulation: UTI Mutual Fund, like all mutual fund companies in India, is regulated by SEBI, which ensures that the fund house adheres to industry guidelines and protects the interests of investors.
7. Historical Significance: UTI Mutual Fund played a crucial role in popularizing mutual funds in India. It was initially established as a government-owned institution and later underwent significant changes in its ownership and structure.
8. Name Change: UTI Mutual Fund was formerly known as Unit Trust of India (UTI). The change in name occurred after the organization was restructured and new shareholders were introduced.
It’s important to conduct due diligence and assess your investment goals, risk tolerance, and investment horizon when considering investments in UTI Mutual Fund schemes or any other mutual fund. Make informed investment decisions and consider consulting with a financial advisor to select the schemes that align with your financial objectives.
list of UTI mutual funds (Table)
how to invest in uti mutual funds
To invest in UTI Mutual Funds, you can follow these steps:
1. Choose Your Investment Platform:
– You can invest in UTI Mutual Funds through various platforms, including the official website of UTI Mutual Fund, registered online mutual fund distribution platforms, or by visiting the nearest UTI Mutual Fund branch or authorized distributor.
2. KYC (Know Your Customer) Compliance:
– Before you can invest in mutual funds, you need to be KYC compliant. If you are not KYC compliant, you can complete the KYC process by submitting the necessary documents, such as identity and address proof, to the fund house or an authorized KYC registration agency (KRA).
3. Select the Mutual Fund Scheme:
– Once you are KYC compliant, choose the UTI Mutual Fund scheme(s) you want to invest in. You can select from a wide range of equity funds, debt funds, hybrid funds, and other types of schemes.
4. Investment Amount:
– Determine the amount you wish to invest in the selected mutual fund scheme. Different schemes may have different minimum investment requirements, so make sure your investment amount meets the minimum threshold.
5. Mode of Investment:
– Decide whether you want to invest as a lump sum (one-time investment) or through a Systematic Investment Plan (SIP), which involves investing a fixed amount at regular intervals.
6. Online or Offline Method:
– Depending on your preference, you can choose to invest online through the official website or a registered online platform. Alternatively, you can visit a UTI Mutual Fund branch or authorized distributor to complete the investment offline.
7. Complete the Application Form:
– Fill out the application form provided by UTI Mutual Fund. You will need to provide your personal information, investment details, and banking information.
8. Payment:
– If you are investing online, you can make the payment electronically using methods like net banking, debit cards, or UPI. If you are investing offline, you can provide a check or demand draft for the investment amount.
9. Confirmation:
– Once your investment is processed, you will receive a confirmation of your investment, which will include details of the number of units allotted to you.
10. Monitor Your Investments:
– Regularly monitor the performance of your mutual fund investments through account statements and the UTI Mutual Fund website.
It’s essential to carefully read the offer document and scheme-related documents of the mutual fund scheme(s) you plan to invest in. These documents provide detailed information about the scheme’s objectives, risk factors, and other essential details.
Please note that the specific process and requirements for investing in UTI Mutual Funds may vary over time, so it’s advisable to check the latest information and documentation requirements on the official UTI Mutual Fund website or consult with an authorized distributor for the most up-to-date guidance.
| UTI EQUITY MUTUAL FUNDS | |||
| Fund Name | Fund Size | 5 Yrs Return | |
| UTI Mid Cap Fund Direct-Growth | ₹8974 Crs | 22.32% p.a | Know More |
| UTI Transportation And Logistics Fund Direct-Growth | ₹2398 Crs | 21.51%p.a | Know More |
| UTI Large & Mid Cap Fund Direct-Growth | ₹1996 Crs | 20.18%p.a | Know More |
| UTI Infrastructure Fund Direct-Growth | ₹1701 Crs | 19.47%p.a | Know More |
| UTI Healthcare Fund Direct-Growth | ₹796 Crs | 18.03%p.a | Know More |
| UTI DEBT MUTUAL FUNDS | |||
| UTI Dynamic Bond Fund Direct-Growth | ₹440Crs | 9.14%p.a | Know More |
| UTI Medium To Long Duration Fund Direct-Growth | ₹311Crs | 8.52%p.a | Know More |
| UTI Banking & PSU Fund Direct-Growth | ₹960Crs | 7.38%p.a | Know More |
| UTI Short Duration Direct-Growth | ₹2389Crs | 6.83%p.a | Know More |
| UTI Low Duration Fund Direct-Growth | ₹3734 Crs | 6.84%p.a | Know More |
| UTI HYBRID MUTUAL FUNDS | |||
| UTI Aggressive Hybrid Fund Direct Fund-Growth | ₹4841 Crs | 16.74%p.a | Know More |
| UTI Multi Asset Allocation Fund Direct-Growth | ₹881 Crs | 12.91%p.a | Know More |
| UTI Retirement Fund Direct | ₹4031Crs | 11.84%p.a | Know More |
| UTI Equity Savings Fund Direct-Growth | ₹292Crs | 11.29%p.a | Know More |
| UTI Conservative Hybrid Fund Direct-Growth | ₹1570Crs | 9.06%p.a | Know More |
| UTI TAX SAVING FUND | |||
| UTI ELSS Tax Saver Fund Direct-Growth | ₹3178 Crs | 15.73%p.a | Know More |
Documents required to invest in UTI Mutual Fund
To invest in UTI Mutual Fund or any other mutual fund in India, you will need to complete the Know Your Customer (KYC) process and provide specific documents for verification. Here are the documents required to invest in UTI Mutual Fund:
1. KYC Documents:
– A completed KYC Application Form.
– Proof of identity (POI): You can submit any one of the following as POI:
– Aadhar Card
– Passport
– Voter ID
– Driving License
– PAN Card (Mandatory for investments exceeding Rs. 50,000)
– Proof of address (POA): You can submit any one of the following as POA:
– Aadhar Card
– Passport
– Voter ID
– Utility bills (electricity, telephone, gas bill) not more than 2 months old
– Bank statement or passbook with the latest entries (not more than 2 months old)
– A recent passport-size photograph.
2. Investment Application Form:
– The mutual fund application form, which is provided by UTI Mutual Fund. You’ll need to fill out this form to specify your investment details, including the fund you want to invest in, the investment amount, and the mode of investment (lump sum or SIP).
3. Investment Amount:
– A check or demand draft for the investment amount. For online investments, you can make the payment electronically using net banking, UPI, or debit cards.
4. Nomination Form (Optional):
– If you wish to nominate someone to receive the proceeds of your investments in case of your unfortunate demise, you can complete a nomination form. This is optional but recommended.
5. FATCA Declaration Form:
– A Foreign Account Tax Compliance Act (FATCA) declaration form may be required for non-resident Indian (NRI) investors.
6. Investment Mandate Form (for SIP):
– If you choose to invest through a Systematic Investment Plan (SIP), you may need to complete an SIP mandate form, which authorizes the automatic deduction of SIP amounts from your bank account.
The specific documentation and requirements may vary, so it’s advisable to check with UTI Mutual Fund or the distributor through which you are investing to ensure you have the latest and most accurate information. Keep copies of all the documents and forms you submit for your records.
Completing the KYC process is a one-time requirement, and once you are KYC-compliant, you can invest in any mutual fund in India.
How to take a loan on UTI mutual fund?
You can take a loan against your UTI Mutual Fund investments through the “Systematic Withdrawal Plan” (SWP) facility. The SWP allows you to withdraw a specific amount from your mutual fund investment periodically. Here’s how you can use this facility to take a loan against your UTI Mutual Fund holdings:
1. Check Eligibility:
– Ensure that your mutual fund investment with UTI Mutual Fund is eligible for the SWP facility, and you meet the fund house’s criteria for taking a loan against your holdings.
2. Contact UTI Mutual Fund:
– Reach out to UTI Mutual Fund or visit their official website to gather information about the SWP facility, including the terms and conditions, eligibility criteria, and any associated charges.
3. Submit an SWP Request:
– Fill out the SWP request form provided by UTI Mutual Fund. In the form, specify the following details:
– The UTI Mutual Fund scheme from which you want to withdraw.
– The amount you want to withdraw in each installment.
– The frequency of withdrawals (e.g., monthly, quarterly, etc.).
– The duration for which you want to continue the SWP.
4. Loan Approval:
– UTI Mutual Fund will review your SWP request and approve it if you meet their eligibility criteria.
5. Start Withdrawals:
– Once your SWP request is approved, UTI Mutual Fund will start making periodic withdrawals from your mutual fund investment as specified in your request.
6. Repayment:
– The SWP amounts withdrawn can be considered as a loan against your mutual fund holdings. You will not be charged interest on this amount. However, you are required to repay the withdrawn amount within the specified duration or according to the terms and conditions set by UTI Mutual Fund.
7. SWP Amounts and Redemptions:
– The SWP amounts will be redeemed from your mutual fund holdings, which means your mutual fund units will be partially sold to fulfill the withdrawal request. The units sold will reduce the value of your mutual fund investment.
Please note that the SWP facility may have specific rules and requirements set by UTI Mutual Fund. The exact terms, conditions, and procedures can vary among different mutual fund schemes and fund houses. It’s important to consult with UTI Mutual Fund and carefully read the scheme’s offer document and related documents to fully understand the SWP facility and its implications. Taking a loan through SWP should be considered carefully, as it involves redeeming your investments.
How to invest in schemes of UTI mutual fund AMC?
To invest in schemes offered by UTI Mutual Fund AMC, you can follow these steps:
1. KYC (Know Your Customer) Compliance:
– Ensure that you are KYC-compliant, as it is a mandatory requirement for investing in mutual funds in India. If you are not KYC-compliant, you can complete the KYC process by submitting the necessary documents to any KYC registration agency (KRA) or an AMC.
2. Choose the Investment Platform:
– Decide whether you want to invest directly through UTI Mutual Fund’s official website or through an authorized distributor or broker.
3. Online Method (Investing through UTI Mutual Fund’s Website):
– If you choose to invest online, visit the official website of UTI Mutual Fund: [UTI Mutual Fund](https://www.utimf.com/).
– Register or log in to your online account if you are an existing investor. If you are a new investor, create an online account.
– Select the mutual fund scheme(s) you wish to invest in.
– Complete the online application form, providing your personal details, investment amount, and other necessary information.
– Make the payment electronically using methods like net banking, UPI, or debit cards.
4. Offline Method (Investing through Distributor or Broker):
– If you prefer to invest through a distributor or broker, contact a registered distributor or broker who deals with UTI Mutual Fund. They will provide you with the necessary application forms and assist you in the investment process.
– Fill out the paper application form with your investment details.
– Provide a check or demand draft for the investment amount.
5. Submit the Documents:
– If you invest online, you will need to upload electronic copies of the required documents.
– If you invest offline, submit the application form, check or demand draft, and necessary KYC documents to the distributor, broker, or the nearest UTI Mutual Fund branch.
6. Confirmation and Account Statement:
– Once your investment is processed, you will receive a confirmation and an account statement from UTI Mutual Fund. The statement will contain details of your investment, including the number of units allotted.
It’s crucial to carefully read the offer document and scheme-related documents of the mutual fund scheme(s) you plan to invest in. These documents provide detailed information about the scheme’s objectives, risk factors, and other essential details.
Keep in mind that specific steps and requirements may vary over time, so it’s advisable to check the latest information on the official UTI Mutual Fund website or consult with an authorized distributor for the most up-to-date guidance.
Top UTI Fund Managers
As of my last knowledge update in September 2021, here are some of the top fund managers associated with UTI Mutual Fund. Please note that the status of fund managers may change over time, so I recommend checking the latest information on the UTI Mutual Fund website or through other reliable sources for the most up-to-date details:
1. Ajit Barve: Ajit Barve has been a senior fund manager at UTI Mutual Fund and has extensive experience in managing equity and hybrid funds.
2. V. Srivatsa: V. Srivatsa is known for managing equity funds at UTI Mutual Fund. He has been involved in the fund management industry for a considerable period.
3. Mandar Mhatre: Mandar Mhatre is a seasoned fund manager who specializes in managing equity and hybrid funds for UTI Mutual Fund.
4. Vishal Kapoor: Vishal Kapoor is associated with UTI Mutual Fund and has experience in fund management, particularly in the equity space.
5. R. Swaminathan: R. Swaminathan has expertise in managing fixed income and debt-oriented mutual funds for UTI Mutual Fund.
Please keep in mind that fund managers may be responsible for various schemes, and their performance and roles can change over time. The effectiveness of a mutual fund depends on the fund manager’s skill and the fund’s investment strategy, so it’s essential to research the specific fund manager and the schemes they manage when considering investments in UTI Mutual Fund. You can find more details about the fund managers and their respective roles on the official UTI Mutual Fund website or in the fund’s scheme-related documents.
frequently asked questions (FAQs) about HDFC Mutual Fund:
Are UTI Mutual Fund’s schemes safe to invest in?
UTI Mutual Fund is one of the well-established and reputable mutual fund houses in India. The safety of investing in UTI Mutual Fund’s schemes depends on various factors, including the fund’s investment objectives, the expertise of the fund manager, the market conditions, and your own investment goals and risk tolerance. Here are some key points to consider:
1. Regulation and Oversight: UTI Mutual Fund, like all mutual fund companies in India, is regulated by the Securities and Exchange Board of India (SEBI). SEBI has implemented rules and regulations to protect the interests of investors and ensure transparency in the mutual fund industry.
2. Diversification: UTI Mutual Fund offers a range of mutual fund schemes, including equity funds, debt funds, hybrid funds, and more. Diversification helps reduce risk as it spreads investments across various asset classes.
3. Fund Manager Expertise: The performance of mutual fund schemes is influenced by the expertise and decisions of the fund manager. UTI Mutual Fund has experienced fund managers responsible for managing their schemes.
4. Investment Goals: It’s important to align your investment in UTI Mutual Fund with your financial goals and risk tolerance. Different schemes cater to various objectives, and it’s crucial to select the ones that match your needs.
5. Past Performance: While past performance is not indicative of future results, you can review the historical performance of UTI Mutual Fund’s schemes to assess their track record.
6. Risk Factors: Mutual funds inherently carry market risk. The level of risk varies depending on the type of fund (equity, debt, hybrid) and the market conditions. UTI Mutual Fund provides information about the risk associated with each scheme in its offer documents.
7. Costs and Expenses: Review the expense ratio and other costs associated with the fund. Lower expense ratios can result in higher returns for investors.
8. Research and Due Diligence: Conduct thorough research before investing. This includes understanding the scheme’s investment strategy, reviewing the offer document, and assessing the historical performance.
It’s important to note that all investments carry some level of risk, including the possible loss of principal. Your decision to invest in UTI Mutual Fund or any other mutual fund should be based on your individual financial circumstances and investment objectives. It’s advisable to consult with a financial advisor who can provide personalized guidance based on your specific needs. Additionally, periodically review your investments and make adjustments as needed to stay on track with your financial goals.
Which UTI Mutual Fund’s scheme is best for the short term?
The choice of a UTI Mutual Fund scheme for short-term investment would depend on your specific financial goals, risk tolerance, and the duration of your short-term investment horizon. UTI Mutual Fund offers various types of mutual fund schemes, including debt funds and hybrid funds, which are typically suitable for short-term investments. Here are some UTI Mutual Fund schemes that you can consider for short-term investments:
1. UTI Liquid Fund: This is a liquid fund that primarily invests in short-term, high-quality debt instruments. It is suitable for investors looking for a low-risk, highly liquid option for short-term investments.
2. UTI Money Market Fund: This fund invests in a mix of money market instruments, short-term debt securities, and cash. It is designed for short-term investors who want a balance between returns and safety.
3. UTI Banking & PSU Debt Fund: This debt fund primarily invests in debt and money market instruments issued by banks and public sector undertakings. It can be a good choice for short-term investors looking for potentially higher returns compared to liquid funds.
4. UTI Regular Savings Fund: This is a hybrid fund that invests in a combination of equity and debt instruments. It is suitable for investors with a slightly higher risk tolerance looking for a balanced approach to short-term investing.
5. UTI Hybrid Equity Fund: This hybrid fund invests in a mix of equity and debt securities. It may be suitable for investors with a short-term horizon who want exposure to both asset classes.
Before selecting a scheme, assess your risk tolerance, the investment horizon, and the specific financial goal for your short-term investment. Additionally, consider consulting with a financial advisor who can provide personalized guidance based on your individual circumstances and help you choose the most appropriate UTI Mutual Fund scheme for your short-term investment needs.
Are UTI Mutual Fund’s schemes Tax-Free?
No, UTI Mutual Fund’s schemes are not tax-free. The tax treatment of mutual fund schemes, including those offered by UTI Mutual Fund, varies depending on the type of scheme and the holding period. Here’s a general overview of the tax implications for different types of mutual fund schemes:
1. Equity Mutual Funds:
– Short-Term Capital Gains (STCG): If you hold equity mutual funds for less than one year, any gains are subject to a short-term capital gains tax of 15%.
– Long-Term Capital Gains (LTCG): If you hold equity mutual funds for more than one year, any gains up to Rs. 1 lakh in a financial year are exempt from tax. Gains exceeding Rs. 1 lakh are subject to a 10% tax without the benefit of indexation.
2. Debt Mutual Funds:
– Short-Term Capital Gains (STCG): If you hold debt mutual funds for less than three years, gains are added to your taxable income and taxed according to your income tax slab.
– Long-Term Capital Gains (LTCG): If you hold debt mutual funds for more than three years, gains are taxed at 20% with the benefit of indexation.
3. Hybrid Mutual Funds:
– Taxation depends on the asset allocation. For the equity component, the same tax rules as equity mutual funds apply, while for the debt component, the same rules as debt mutual funds apply.
4. Systematic Withdrawal Plan (SWP):
– SWP from debt mutual funds is treated as redemption, and the applicable capital gains tax is levied.
5. Dividend Distribution Tax (DDT):
– DDT is paid by the mutual fund on dividend distribution to investors in debt mutual fund schemes. Investors do not have to pay additional tax on these dividends.
It’s essential to note that the above tax rules are subject to change as per the latest income tax regulations and amendments. Therefore, it’s advisable to consult with a tax advisor or financial planner for the most up-to-date and personalized guidance regarding the tax implications of your investments in UTI Mutual Fund or any other mutual fund scheme. Additionally, consider your own tax bracket and financial circumstances when evaluating the tax impact of your investments.
How can I cancel the UTI ongoing SIP?
To cancel an ongoing Systematic Investment Plan (SIP) with UTI Mutual Fund, you can follow these steps:
1. Contact UTI Mutual Fund: You can request the cancellation of your SIP by getting in touch with UTI Mutual Fund. Here are the ways to do it:
– Online: If you have an online account with UTI Mutual Fund, you may be able to cancel your SIP online through their website. Log in to your account and look for options related to managing your SIPs.
– Customer Support: Contact the customer support or investor services team of UTI Mutual Fund. You can find their contact information on the official UTI Mutual Fund website.
2. Fill out a Cancellation Request Form: UTI Mutual Fund may provide a SIP cancellation request form, which you can fill out. This form typically requires you to provide details such as your folio number, scheme name, and the SIP you wish to cancel.
3. Submit the Form: Once you’ve filled out the cancellation request form, submit it to UTI Mutual Fund. You can do this by mailing the form to their address or visiting their nearest branch or service center in person.
4. Confirmation: After processing your request, UTI Mutual Fund will send you a confirmation that your SIP has been canceled. Ensure that you keep this confirmation for your records.
It’s essential to confirm the cancellation with UTI Mutual Fund to avoid any future debits from your bank account or further SIP investments.
Please note that the specific process and requirements for canceling an ongoing SIP may vary, and it’s advisable to check the latest information on the official UTI Mutual Fund website or consult with their customer support or investor services team for the most up-to-date guidance.
How can I get the ICICI Prudential Mutual Fund statement?
To get a statement of your UTI Mutual Fund investments, you can follow these steps:
1. Online Method:
UTI Mutual Fund provides online access to your account statements for registered investors. You can download your account statement by following these steps:
– Visit the official UTI Mutual Fund website (https://www.utimf.com/).
– Log in to your online account using your username and password.
– Navigate to the “Investor Services” or a similar section on the website.
– Look for an option to download your account statement or view your transaction history.
– Select the relevant date range for the statement you require.
– Download and save the statement for your records.
2. Through Email:
You can also request your account statement through email:
– Send an email to UTI Mutual Fund’s customer support or investor services team requesting your account statement. Include your folio number and other relevant details.
3. Through Customer Support:
– Contact UTI Mutual Fund’s customer support or investor services team via phone or email and request your account statement. They will guide you through the process and may ask for identification and verification information.
4. Visit a UTI Mutual Fund Branch:
– If you prefer an in-person interaction, you can visit the nearest UTI Mutual Fund branch or service center. Request your account statement, and they will assist you in obtaining it.
Please note that the account statement will contain details of your investments, including the number of units, the value of your holdings, transaction history, and other relevant information. It’s advisable to keep your account statements for record-keeping and for tax purposes.
The specific process and options for obtaining your UTI Mutual Fund statement may vary, so it’s recommended to check the latest information on the official UTI Mutual Fund website or consult with their customer support or investor services team for the most up-to-date guidance.
How can I increase the SIP amount of the UTI Mutual Fund’s scheme?
To increase the Systematic Investment Plan (SIP) amount in a UTI Mutual Fund scheme, you can typically follow these steps:
1. Visit the UTI Mutual Fund Website:
– Go to the official UTI Mutual Fund website (https://www.utimf.com/).
2. Log In to Your Account:
– Log in to your online account with UTI Mutual Fund. If you don’t have an online account, you can register for one.
3. Access Your SIP:
– Once logged in, navigate to the “Investor Services” or a similar section on the website.
4. View Your Existing SIPs:
– Look for an option that allows you to view your existing SIPs. This section will display your current SIP details.
5. Modify Your SIP:
– Within the existing SIP details, you should find an option to modify or increase the SIP amount. Select this option.
6. Specify the New SIP Amount:
– Enter the new SIP amount that you wish to invest in the UTI Mutual Fund scheme.
7. Confirm and Save:
– After entering the new SIP amount, review the details and confirm the changes.
8. Authenticate the Changes:
– You may be required to authenticate the changes with your online account credentials or by entering an OTP (One-Time Password).
9. Confirmation:
– UTI Mutual Fund will process your request to increase the SIP amount. You will receive a confirmation of the change.
Alternatively, you can also increase the SIP amount by submitting a written request to UTI Mutual Fund through email or by visiting one of their service centers. In this case, you may need to fill out a SIP modification form and provide your folio number and other relevant information.
Before increasing your SIP amount, consider your financial goals and whether the new investment amount aligns with your budget and risk tolerance. Additionally, ensure that you have sufficient funds available in your bank account to cover the increased SIP amount.
The exact process and options for modifying your SIP may vary, so it’s advisable to check the latest information on the official UTI Mutual Fund website or consult with their customer support or investor services team for the most up-to-date guidance.
How to take loan against UTI Mutual Funds
To take a loan against your UTI Mutual Fund investments, you can consider using the Unit Trust of India (UTI) Mutual Fund Loan Against Units (LAU) facility, provided your specific mutual fund scheme allows for loans. Here’s how you can take a loan against your UTI Mutual Fund investments:
1. Check Eligibility: Verify whether the UTI Mutual Fund scheme in which you have invested allows for loans using the Loan Against Units (LAU) facility. Not all schemes provide this option.
2. Loan Amount: Determine the maximum loan amount you are eligible for based on the current Net Asset Value (NAV) of the units you hold. The loan amount is typically a percentage of the NAV.
3. Contact UTI Mutual Fund: Reach out to UTI Mutual Fund through their customer service or visit their website to get details about the Loan Against Units (LAU) facility. They can provide you with information on the loan terms and conditions, eligibility criteria, and the application process.
4. Loan Application: Apply for the loan through the Loan Against Units (LAU) facility. You may need to complete a loan application form and provide the required documentation, including your KYC details and mutual fund investment information.
5. Loan Approval: UTI Mutual Fund will assess your eligibility and approve the loan request. This process typically takes a few business days.
6. Loan Disbursement: Once approved, the loan amount will be disbursed to your bank account.
7. Loan Repayment: The loan against your mutual fund units is generally repaid through the redemption of your units. UTI Mutual Fund will sell a portion of your mutual fund units to cover the loan amount and applicable interest.
8. Interest Rate: The loan is subject to an interest rate, which varies depending on the terms of the Loan Against Units (LAU) facility.
Please note that taking a loan against your mutual fund units can affect the growth potential of your investment. When units are redeemed to repay the loan, the remaining investment may not benefit from the same market conditions as before. It’s essential to carefully review the terms and conditions of the Loan Against Units (LAU) facility and assess the financial implications before availing the loan.
The availability of loan facilities and the terms may vary between different mutual fund schemes and fund houses. Therefore, it’s important to consult with UTI Mutual Fund, review the specific terms of the scheme you are invested in, and consider seeking advice from a financial advisor if needed.