UTI mutual fund is a mechanism that pools your resources by issuing the mutual fund units to the investors and invests the funds in securities in accordance with the objectives that have been set out in the offer document.
The UTI mutual fund units are issued to those who invest in the fund in accordance with the money that is invested by them. Those who buy UTI mutual fund are also its unit-holders.
The UTI mutual fund invests the money into a spectrum of industries, and this reduces risk because the fund is diversified. The profit and the loss are divided proportionally to the investors. The UTI mutual fund has many mutual fund investment schemes that get launched from time to time.
The UTI mutual fund had launched the open-ended debt scheme for women. This plan was for the smart women, and it offered a saving platform for the female investors.
The aim of this scheme was to invest the money in equity and securities that were equity-related and the debt and the money market instruments as well. The scheme generated reasonable income, and the capital appreciation was also moderate. The UTI Mutual Fund Scheme was for women who are over the age of 18, and this scheme was designed to offer an exclusive opportunity for investors to invest money for them. The other alternative was for an adult to invest money in the scheme on behalf of the applicant. This was beneficial if the lady was challenged medically.
The aim of the UTI mutual fund scheme was to allow for a systematic investment plan over the lady’s working life, and this scheme allowed women to invest small amounts of money for periodic withdrawals. The scheme thus offered a regular cash flow for the lady investors. The scheme allowed the women investors to invest small amounts of money into equity that came with moderate risk.
The scheme also provided a stable allocation asset route for equity and debt experience from a long-term investment perspective. The debt portfolio brought a stability factor, and the equity provided a growth scope
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Mutual Fund Categories
The UTI mutual fund gets categorised into the open-ended scheme, and a closed-ended scheme depending on what the fund’s maturity value is. The open-ended fund is one that is available for investors to subscribe and repurchase which can be done continuously. The scheme does not come with a fixed maturity date, and the investor is completely free to buy and sell units. The NAV related prices are declared daily, and the key feature of this scheme is that it is very liquid.
The close-ended scheme has a stipulated maturity period that is of five or seven years. The fund is open to subscription only for a specific period when the scheme gets launched. The investors can invest in the scheme at the time it is issued initially to the public, and after that, the scheme can be bought and sold on the stock exchanges. The units get listed on the stock exchange. In order to give investors an exit route, the close-ended funds give a selling back option where they can sell the units to the mutual fund through intermittent repurchases which is done based on the prices related to the NAV.
The Benefit For Women
The UTI mutual fund open-ended debt scheme was introduced exclusively for women so that they had a place to regularly invest their money. The scheme allowed investment in small amounts and also let the investor benefit from the returns offered by equities. The investment objective was to give the women safe and secure investment platform that helped them grow their fund and have bulk money at a later date. The regular, systematic investment gave a systematic investment route, and the fund also allowed easy withdrawal when needed.
Investing in mutual funds was a great way because it allows the women to invest regularly and their funds are managed by professionals who are experienced. It is important to have someone with in-depth financial knowledge to be able to manage a fund, and the mutual fund scheme has a dedicated fund manager who would invest the money in assets and instruments where the returns would be maximum.
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