Question 1

What is UTI Medium Duration Fund (Formerly UTI Medium Term Fund)?

Accepted Answer

UTI Medium Duration Fund (Formerly UTI Medium Term Fund) is an open ended medium term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 3 years and 4 years. (Please refer to page no. 19 of SID on which the concept of Macaulay duration has been explained)

Question 2

Why should I invest in UTI Medium Duration Fund (Formerly UTI Medium Term Fund)?

Accepted Answer

The scheme aims to generate superior risk adjusted returns from both interest income and capital gainsMaintains well-diversified portfolio of government securities and debt instruments with a portfolio duration of 3 to 4 years

Question 3

How are UTI Medium Duration Fund (Formerly UTI Medium Term Fund) taxed?

Accepted Answer

UTI Medium Duration Fund (Formerly UTI Medium Term Fund) will attract capital gains tax if the redemption value is more than the purchase price. The gains can either be short term or long term in nature.If you hold units for 3 years or less, the gains made are subject to Short-Term Capital Gains Tax and are taxed as per your income slab. If you hold the units for more than three years, the gains are subject to Long-Term Capital Gains Tax which is taxed at 20% and you would get the benefit of indexation (available to debt funds). Indexation accounts for the effect of inflation in the acquisition purchase cost i.e. the purchase price is increased to adjust for inflation (using an index provided by the Government) before calculating the capital gain. Thus, it reduces the overall tax liability.

UTI Medium Duration Fund

About Scheme

Why choose this scheme?

Past Performance