UTI Mutual Fund is a good investment option for mutual fund investment in India. UTI is an AMC (Asset Management Company) mutual fund. It has received separate funding under AMC.
UTI Mutual Fund Unit is a subsidiary of Unit Trust of India, which was established on 30 December 1963 as per the UTI Act passed by the Parliament of India. UTI Mutual Fund was not only one of the oldest fund houses in India but was also synonymous with steady growth. Currently, UTI MF has more than 1,000 mutual fund schemes, offering multiple payment options, covering more than 100 centers across India.
The UTI Dividend yield fund‘s objective is to provide high dividend yields by investing moderate capital gains or dividend distributions primarily in equities and equity-related instruments. There can be no guarantee that the scheme’s investment targets will be achieved.
The fund mainly invests in dividend-yielding equity and equity-related instrument. In addition to the “dividend yield,” the fund will also look that includes cash flow generation, management quality, earnings growth prospects, industry outlook, and more. Funds have the ability to mold themselves in the market cap spectrum actively.
Dividend Yield Fund
- 98.86 percent exposure to Indian stocks.
- 59.68 percent in large-cap stocks
- 26.08 percent in midcap stocks
- 12 percent in small-cap.
What is the suitability of investing in UTI Dividend yield funds?
If you have macro-trend knowledge and want to take select bets to achieve higher returns than other equity funds, even if the overall market is outperforming, these investors should also be prepared for the possibility of moderate to steep losses for their investments.
Most of us believe that investors should avoid these funds, which have narrowly defined investments. Investors can invest in multi-cap funds, which give their fund management team full authority to invest in companies where they can expect maximum profit.
Taxation of Income: Capital gains
- If an investor sold his mutual fund units after one year from the date of the start of the investment, if you earn up to Rs 1 lakh in your financial year, then this amount will be exempt from tax. If you get more than Rs 1 lakh, then this amount will be taxed at a rate of 10%.
- If you are selling your mutual fund unit within one year from the beginning of the date of investment, then any amount you get will be taxed at the rate of 15%.
- As long as you continue to operate the units, there will be no tax.
Note: If you need to redeem your investment in less than five years, do not invest in this or any other dividend yield fund.
Conclusion: UTI Mutual Fund is one of the most prominent asset management companies in India, which has developed itself among investors as a reputed and reliable fund house. UTI Mutual Fund has been doing well since its inception and has received numerous accolades from mutual funds for innovative approaches and stable returns.