Investor Education Series - Watch & Learn

Learned investors not only make sound decisions but are less likely to make wrong choices. So as an investor, it is important to abreast yourself with all the aspects of investments & apply them judiciously for achieving objectives.

At UTI Mutual Fund we have initiated a campaign to educate the investors & help them make sound investment decisions. Our series of educational videos are aimed at helping the investors analyze & understand the functioning of Mutual Fund & the various methods & benefits of investing in Mutual Fund. It is an initiative that encourages people to achieve their financial objectives through wise investment choices.

So it’s time to #WatchAndLearn 

Budget Basics For You

As the Finance Minister prepares to present the Union Budget of India for the fiscal year 2013-2014, here are some budget basics for your better understanding:

What is the Union Budget?
The Union Budget of India is an annual affair, displaying the Government of India’s finances. Considered the most important economic and financial event in India, it is presented on the last day of February by the Finance Minister of India, and is referred as the annual Financial Statement in article 112 of the Constitution of India.
It gives an aggregate account of revenues from all sources, expenses on various activities undertaken by the government and estimates for the next fiscal year. 

Who prepares the annual Union Budget?
A separate division in the ministry of finance – Budget Division looks after the preparation of the Budget.

Budget process:
- The Budget Division receives funds’ proposals and requirements from all government ministries and departments
- A Draft Budget is prepared, based on all the inputs received
- The Finance Minister in consultation with the Prime Minister approve the Draft Budget
- The Final Budget is then presented in the Parliament
- Each ministry’s grant proposal and revision of taxes (direct & indirect) are discussed and voted upon in the Parliament; and Finance Minister responds to questions.
- Once the grants are approved, 2 bills are introduced in the Lok Sabha – APPROPRIATION BILL (final approval of funds to be given to each ministry) and FINANCE BILL (tax proposals), Union Budget is approved.

How to understand the Budget Document:
The Finance Minister gives the budget speech mainly in two parts – Part A & Part B:

Part A: Gives a broad outlay of money for different sectors. Priorities of the government, Introduction of new Schemes & Focus Areas are also indicated in this part. Last year’s Budget Data is compared with actual figures (which is called revised estimates, usually based on transactions till 31st Dec). So Part A of the Budget Speech is more concerned with the Macro aspect of the Economy, the economists’ main interest.

Part B: Deals with Taxation proposals. This can have direct bearing over a citizen’s personal finances, which may pinch or widen as effect of the proposals. A general reader can grasp the provisions by going through the Memorandum of Explanations attached, which gives the broad background of the new changes.

What are your views & expectations from the Budget 2013-2014, let us know in comments below.

Source: http://www.moneycontrol.com

‘Invite Your Friends’ Contest Winner

Enthralled with the excitement showered by all of you for the “Invite Your Friends” contest, we thank you for the participation. The contest conducted by UTI Mutual Fund ran from 27/07/12 to 27/09/12 and witnessed enormous entries from contestants across country. 

We are pleased to inform, Satyajit Majumder as winner of this contest. Many Congratulations to the winner, your prize will be delivered to you shortly. Please email us your phone number and postal address at utimutualfunds@gmail.com for the earliest delivery of your prize.

Contest

Hey Everyone,

We are giving you a chance to take away a cool gratification! Just follow the steps and stand a chance to win:

STEPS TO WIN - 

1. Go to UTI Mutual Fund Facebook Page, here's the link - www.facebook.com/UTIMutualFund

2. Click on 'Invite Your Friends!' Tab and send invitation to as many of your friends as possible to join the page.

3. Later, take a screenshot of the number of friends who have liked UTI Mutual Fund because of you  which you will be able to see when you visit the UTI page, as follow:

4. Mail the screenshot to us at smo@uti.co.in

The higher the number of friends, the more chances you have to win! It's a simple way to win a cool Smartphone. Contact us for queries, if any

All The Best! :)

Fixed Maturity Plans

Everyone has different questions related to FMP, following are 5 frequently asked questions about FMP which is explained clearly. Hope it would be of great assistance for you:

1. What is a Fixed Maturity Plan?

Fixed Maturity Plans or, in short, FMP (may also be named as Fixed Term Plan (FTP), Fixed Term Interval Fund (FTIF) etc are debt schemes with a fixed maturity, launched by mutual funds. They have tenure for a fixed period of time that could range from one month to as long as three years or more. The objective of an FMP is to generate a stable return over a fixed maturity period.

2. Where do Fixed Maturity Plans (FMPs) invest?

FMPs invest in fixed income securities like money market instruments government securities, corporate bonds, certificate of deposits (CDs), commercial papers (CPs), bank fixed deposits (FDs) etc., which mature in line with the tenure of the fund. Since the instruments are held to maturity, there is no risk of the value of the security being affected by interest rate movements.


3. Who should invest in Fixed Maturity Plans?

Fixed Maturity Plans may be looked as an investment option by:

• Investors who seek safe avenues for investment and in the process keep money in fixed deposits (FDs) with banks. Such investors can earn tax efficient returns based on current tax laws. However, it is advisable to always consult Tax Advisor before investing in FMPs.

• Investors who want to park money for a fixed period of time in relatively safer instruments that offer potential for generating stable returns, with a view to meeting certain financial goals in the near future.

Even aggressive investors who normally prefer equity investments may invest a part of their funds in FMPs. As a prudent investor one needs to have a proper asset allocation in place and FMPs offer stability to the investment portfolio.

4. What are the kinds of risks associated with investing in Fixed Maturity Plans?

The three most important risks associated with debt instruments are Credit Risk, Interest Rate Risk and Liquidity Risk.

• Credit Risk – risk of default by the issuer of a security.

• Interest Rate Risk – A possibility of the scheme getting affected by changing interest rates. Such risks get nullified by investment in securities that mature in line with the Plan Period. Hence the returns are predictable and investors staying in the scheme till maturity are not likely to be affected by market fluctuations.

• Liquidity Risk – Risk of not being able to get the funds back at the time of maturity or otherwise.

UTI FMPs aim to minimize most of the risks by the very nature of their structure and investment concept.

5. What are the types of Fixed Maturity Plans/Interval Plans that UTI offer?

The Fixed Maturity Plans of UTI could be categorized into the following:

• Fixed Maturity Plan: Fixed Maturity Plan offered in quarterly, half-yearly and yearly maturity.

• Fixed Interval Income Fund: Fixed Income Interval Fund offered in quarterly, monthly, half-yearly and annual interval.

• Fixed Term Income Fund: Fixed Term Income Fund offered in varying maturities.

For scheme specific information, please refer to Scheme Information Document (SID) of respective scheme.


Mutual Fund investments are subject to market risks, read all scheme related documents carefully

Your Future is in your Hands, Literally.

Today, all of us work hard by sacrificing our social life and concentrating on our career. All this with an aim to have a peaceful and luxurious future ahead, however, the sooner you start the better it is, is what we suggest. Building a corpus i.e. the amount of money you need soon after you stop working is mostly intended to be a replacement of your income. Now, a corpus using mutual fund route can be a smooth job. However, there are several hurdles and options that you will witness while building your corpus which you ought to know.

When you are planning your retirement, there are certain Do’s and Don’ts that you should bear in mind, which is given in the article attached below.

In olden days, kids were the pillar and support in their parent’s old age time but recently according to the latest census data indicates that the median household size in urban India is now less than four, which is a first-of-its-kind phenomenon in the country. This means that the family size is shrinking and India as a society is becoming more nuclear, wherein planning for retirement becomes even more critical, with children not being a dependable any more. The times are changing what are you planning to do about this?

It doesn’t end here; click on the article > http://www.indiainvestkaro.com/toi_pdf/TOIM_2012_5_1_15.pdf to know how you can plan an effective retirement in present era, when is the best time to use your funds and how to build a corpus for annuity!

Give your kid the best of everything by planning today.

April is that time of the year when new academic session begins in most part of India. This is also the time, when parents have to shell out a lumpsum of money; it will be difficult time for you unless you have already planned your personal finance properly.  If analysed, these short-term plans are often neglected by the parents. Most of the parents first think about their child’s future but that doesn’t mean you ignore the present scenario.

Click on the article attached below, to read in detail how you can plan your short-term finances and make sure you don’t face difficult times during the beginning of your child’s academic year.

Talking about education and their expenses, the cost of the present education system is on rise! And if one is planning for foreign education, the cost has gone up by over 20%. This doesn’t mean you stop thinking about your child’s best future. In spite of the high rise in price, there are several things you can do to ensure that you achieve your kid’s dream. For example, opt for Pot-of-money approach, start early, decide on asset allocation, choose SIP or Insurance and so on.

Click here > http://www.indiainvestkaro.com/toi_pdf/TOIM_2012_4_17_15.pdf and start planning for your child’s best future now!