Frequently asked questions
what is UTI corporate bond fund?
UTI Corporate Bond fund is an open ended debt scheme predominantly investing in AAA and AA+ rated corporate bonds
Why Should I Invest in corporate bond fund?
•Investor who want to build their core debt portfolio for the medium term investment horizon can look at investing in UTI Corporate Bond Fund
• Conservative investing looking for seeking optimal return with relative stability may look at UTI Corporate Bond Fund as the fund invests in highly rated debt instruments
How to Invest in UTI corporate bond fund?
Investors can simply log on to utimf.com or use UTI Mutual Fund Application and start investing subject to KYC compliance. Investors may also approach nearest UTI Financial Centers (UFCs). Alternatively, you may also approach your mutual fund distributor, financial advisor or various online platform for investments.
Tax Implication on UTI corporate bond mutual funds
UTI Corporate Bond 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.
What are the benefits of investing in UTI Corporate Bond Fund?
• UTI Corporate Bond Fund would invest high credit quality instruments (min. 80% investment in AAA & AA+ rated instruments) • The fund aims to generate reasonable income and capital appreciation by investing in debt instruments with shorter maturity (1 to 3 years)