Why invest in Solution-oriented Funds?
Since different asset classes reflect varying attributes across different periods, it becomes crucial for the investors that their investments suit the investment horizon and their financial goals. For example, equity funds, which tend to be volatile over the short term, may not be considered suitable for short term financial goals. Further, it is advised that they link their mutual fund investments with specific goals to continue saving towards their financial goals. Solution-oriented schemes aim to bridge the gap for such investment needs.
What are the different types of Solution-oriented Funds?
Following are the two types of solution-oriented mutual funds, as allowed by SEBI:
- Retirement Fund – These are retirement oriented mutual fund schemes having a lock-in period of 5 years or till retirement age, whichever is earlier.
- Children’s Fund – These funds aim for investment for children having a lock-in period of 5 years or till the child attains majority, whichever is earlier.
Who should invest in Solution-oriented Funds?
Solution-oriented schemes aim to achieve the investment objectives towards specific financial goals, which may range from retirement planning to a child’s education. As such, the investors may consider investing in such solution-oriented schemes while planning for such financial goals.* Disclaimer - Past performance is not a guarantee of future returns and may or may not be sustained in the future.
The information set out above is included for general information purposes only and is not exhaustive and does not constitute legal or tax advice. In view of the individual nature of the tax consequences, each investor is advised to consult his or her or their own tax consultant with respect to specific tax implications arising out of their participation in the Scheme. Income Tax benefits to the mutual fund & to the unit holder is in accordance with the prevailing tax laws/finance bill 2020. Any action taken by you on the basis of the information contained herein is not intended as on offer or solicitation for the purchase and sales of any schemes of UTI mutual Fund. Please read the full details provided in SID and SIA carefully before taking any decision.