Frequently asked questions
What is a UTI Regular Savings Fund?
UTI Regular Savings Fund is a hybrid fund that has exposure to both equity and debt instruments. The exposure to the high-quality debt instruments helps with the stable income, while the exposure to equity instruments generates capital appreciation.
Who should Invest in UTI Regular Savings Fund
- Investors looking for regular stream of income in the form of dividend or through Systematic Withdrawal Plan (SWP)
- Investors seeking moderate participation in equity with relatively lower overall portfolio risk
- Investors having an investment horizon of 3 years & above
How to Invest in UTI Regular Savings Fund?
Investors can invest online at UTI Mutual Fund website or download the mobile app and start investing subject to KYC compliance. Investors may also approach nearest UTI Financial Centres (UFCs). Alternatively, you may also approach your mutual fund distributor, financial advisor or various online platform for investments.
How are UTI Regular Savings Fund taxed?
On redemption of investments of UTI Regular Savings Fund, capital gains are taxed as below: The 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 the units are held for 3 years or less, the gains made are subject to Short-Term Capital Gains Tax (STCG) and are taxed as per the income slab. If the units are held for more than 3 years, the gains are subject to Long-Term Capital Gains Tax (LTCG) which is taxed at 20% with the benefit of indexation (available to debt-oriented funds). Indexation accounts for the effect of inflation in the acquisition purchase cost i.e., the purchase price is increased to adjust for inflation (as per the cost inflation index (CII) notified by the Central Board of Direct Taxes (CBDT)) before calculating the capital gain. Thus, it reduces the overall tax liability for the investor.
Why Invest in UTI Regular Savings Fund?
UTI Regular Savings Plan is a tax efficient investment option, investing in quality portfolio mix of debt and equity instruments. Investors looking for regular stream of income through opting for systematic withdrawal plan (SWP) or income distribution cum capital withdrawal plan (IDCW)