As the popular adage goes, ‘Don’t put all your eggs in one basket’. It is a popular saying that applies to all fields, including investing in UTI MF. This process of investing in different portfolios to minimize financial risk is known as diversification.
UTI Mutual funds are known for having many schemes to invest in with their respective AUM, returns, etc.
But how can UTI Mutual Funds help strengthen your investment portfolio? This is what we’ll explored in the sections below. We shall discuss:
- What a UTI Mutual Fund is
- Its various benefits and features
- What makes these funds an essential component of your investment strategy
Continue reading to know more on the same!
What are UTI Mutual Funds?
The Unit Trust of India was established in 1963. 40 years later, in 2003, the Unit Trust of India was divided into two distinct entities, UTI MF and SUUTI (Specified Undertaking of Unit Trust of India).
UTI Mutual Funds was registered with SEBI (Securities and Exchange Board of India) on the 1st of February, 2003.
This is one of the oldest funds of India and has:
- Almost 11 million investors
- More than 250-plus active mutual fund schemes
- 50,000-plus AMFI and NSFM-verified advisors
- Has about ₹2.83 lakh crores worth of AUM (Assets Under Management)
- Owns about 5.32% of the industry’s AUM share
Mainly, UTI MF has the following types of mutual fund schemes under its belt:
- Equity
- ETFs
- Debt
- Solution-Oriented
- Hybrid
Interestingly, the UTI Mutual Fund house made its debut on the stock exchange market, 4 years ago, in October 2020.
Who is the leading authority of UTI MF?
Mr. Imtaiyazur Rahman is the CEO and MD of the UTI Mutual Fund House. He joined the Unit Trust of India Investor Services in 1998, and the UTI AMC Limited in 2003.
He also became the CFO and Group President of the company in 2005.
As part of that role, he headed the following divisions of the company:
- Accounts
- Finance
- Taxation
- IT
- Board-related affairs
- Alternate Investments
- Offshore funds
- Portfolio Management Services
The fund has performed considerably well under his leadership, since:
- The fund has seen consistent returns across its various fund categories
- Its AUM has grown considerably, with a current net worth of 2.83 lakh crores
- Expanded its reach by making its products more accessible to investors nationwide
- The fund house has received various awards and a lot of recognition
What are the top 5 UTI MFs to invest in?
As a budding investor, you would like to know which mutual funds can prove beneficial for you. Hence, we’ve compiled a list of the top 10 mutual funds that are performing well under the UTI MF schemes.
They are:
- UTI Flexi Cap Fund Direct Growth
AUM: ₹26,936 crore
NAV: ₹338.5831 (as of 21st Aug, 2024)
Minimum investment: ₹5000
Risk: High
5Y return: 30.74%
- UTI Nifty 50 Index Fund Direct Growth
AUM: ₹19,357 crore (as of June 30, 2024)
NAV: ₹171.09 (as of 21st Aug, 2024)
Minimum investment: ₹1,000
Risk: Very High
5Y return: 14.00%
- UTI Liquid Fund Direct Growth
AUM: ₹ 26,266 crores
NAV: ₹4068.2295 (as of 21 Aug, 2024)
Minimum investment: ₹1,000
Risk: Moderate
5Y return: 5.29%
- UTI Transportation and Logistics Fund Direct Growth
AUM: ₹3,873 crores
NAV: ₹312.18 (as of 21 Aug, 2024)
Minimum investment: ₹5,000
Risk: High
5Y return: 29.11%
- UTI Low Duration Fund Direct Growth
AUM: ₹2,849 crores (as of 30th June, 2024)
NAV: ₹3,368.11 (as of 21 Aug, 2024)
Minimum investment: ₹500
Risk: Low to Moderate
5Y return: 7.17%
What are the benefits of UTI Mutual Funds?
The key benefits of investing in UTI MF schemes are:
- Professionally managed fund allocation
All reputed AMCs have fund managers to handle the asset allocation. So, you can rest assured that your money is in good hands.
- Potential for growth
Different mutual fund schemes have different growth rates. Hence, you can invest in a scheme of your choosing to maximise your returns. Remember to use a mutual fund sip calculator to calculate the returns of the fund you choose.
- Multiple choices
Due to the variety of schemes available, you can choose your desired scheme after considering your options.
- Diversification of your portfolio
You can diversify your portfolio since there are many UTI MF schemes available.
- Liquidity
UTI Mutual Funds allow you to sell your assets at the right time, if you need some urgent funds.
- Income tax-centric benefits
Depending on the type of scheme, you can enjoy income tax benefits too. For example, when you invest in an ELSS scheme.
Let now explore how you can invest in UTI Mutual Funds below.
How can You Invest in UTI MF?
Investing in UTI Mutual Funds can be quite an easy and hassle-free process with the help of the right medium. Some websites have a mutual fund sip calculator which allows people to view their monthly investment plan.
However, let’s proceed with the steps of investing in UTI Mutual Funds below:
- Visiting the concerned fund website
Firstly, you must visit the AMC (Asset Management Company) website and select the ‘Invest Now’ or the ‘Invest With Us’ option. Remember to choose websites that come with an attached SIP Calculator. You can view your projected returns easily with the help of that calculator.
Once you do so, it will take you to a separate page or launch a dropdown menu.
Select your desired fund or scheme from the options provided. However, you can select the ‘Login’ option if you’re an investor. You can view your existing investments, and make an informed decision after logging in.
- KYC Compliance
Remember that you must comply with the SEBI-approved Know Your Customer (KYC) Guidelines.
This requirement applies to existing investors and new investors. You will need to input your PAN number to check for the same.
- KYC Registration
KRAs (KYC Registration Agencies) registered with SEBI carry out the registration of an investor’s KYC. Hence, you need to only register your KYC once, since the data is stored in the relevant database.
However, if PAN is not KYC-compliant, then you can carry out the process via other SEBI-approved options.
On the other hand, if your PAN is KYC-compliant, then you’re good to go.
- Providing The Investment Details
Once your KYC is registered, you will have to provide your investment details, such as:
- Name of the Scheme
- Scheme plan type (Direct/Regular)
- Growth or Dividend Option
- Nominee details
- Bank account details
- SIP/Lump-sum confirmation
If you’re investing in an SIP plan, then you would need to provide the following details:
- Number of investments
- Start and end date
- Investment date
- Frequency
- Installment account
You can use the AMCs’s mutual fund sip calculator to calculate the necessary your returns, etc. before inputting them.
- Completing the Payment
Once you input all the details, you will be redirected towards a payment getaway. You will need to make a payment depending on the payment gateway type.
- Registering the SIP with a Bill Pay option
If you registered for the SIP with the help of Internet Banking, then the AMC generates a URN or Unique Registration Number. This URN must be registered with the investor’s bank’s website to complete registering the SIP.
Also, remember to set up an autopay for your UTI MF SIP. This will ensure that the units are allocated as per the Folio Number.
Key Takeaways of UTI MF Schemes
- The Unit Trust of India was established in 1963. 40 years later, in 2003, the Unit Trust of India was divided into two distinct entities, UTI MF and SUUTI (Specified Undertaking of Unit Trust of India).
- UTI Mutual Funds was registered with SEBI (Securities and Exchange Board of India) on the 1st of February, 2003.
- Mr. Imtaiyazur Rahman is the CEO and MD of the UTI Mutual Fund House. He joined the Unit Trust of India Investor Services in 1998, and the UTI AMC Limited in 2003.
- The Top 5 UTI MF you can invest in are: UTI Flexi Cap Fund Direct Growth, UTI Nifty 50 Index Fund Direct Growth, UTI Liquid Fund Direct Growth, UTI Transportation and Logistics Fund Direct Growth, and UTI Low Duration Fund Direct Growth
- Use a mutual fund sip calculator to calculate the returns of the fund you choose.
