‘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!

 

Choose the right Financial Adviser

 A financial adviser is the professional who helps you with your investments; hence it is important to check if he/she is equipped with the right amount of information and experience. Moreover when analysed financial advisers usually suggest you to have a mix of mutual funds - shares, bonds, insurance policies and gold to meet your long term goals, however, unfortunately not all financial advisers are capable of advising you all assets classes, for whatever reasons. So, it is essential that you make an effort in choosing the right financial adviser.

Many people have the tendency to think that they can take care of their financial investments without any guidance, which is a wrong perception. You require a professional guidance when it comes to investments because financial advisers are the bridge between the market and they aim mainly at capturing every opportunity in the market. 

To know more, how you can pick the right financial adviser and what are the certain things that a financial adviser keep in mind click > www.indiainvestkaro.com/toi_pdf/TOIM_2012_4_10_15.pdf

Tax - Saving MFs May Beat New Scheme

The Union Budget has bought a lot of changes in the financial market. Finance Minister – Pranab Mukherji surprised everyone with his speech on the new scheme aimed at bringing new investors into Equity market through tax-incentives. Although detailed working of the scheme is yet to be out, at the basic level, the scheme would allow for income tax deduction of 50% to new retail investors, who invest up to Rs 50,000 directly in equities each year. Not only is this, at the outset, the scheme is first of its kind that gives direct incentives to equity investment through tax sops.

By introducing a new scheme, the budget has also given some relief to tax payers in the form of hiked income tax exemption limit and also made some changes in the tax slabs!

It doesn’t end here, for all those who have a Savings Bank account; the budget has proposed a tax free income of upto Rs.10, 000 in your savings bank. Click on the article attached below to know what financial planners have to say about this.

2012 Union budget also brings a smile to fresh retail investors. The budget has launched various investor friendly initiatives, which can be a win-win situation for all new retail investors. 

This was just a gist, to know how Union Budget has affected the Indian financial market in detail, click > http://www.indiainvestkaro.com/toi_pdf/TOIM_2012_3_20_17.pdf

The Deflationary Power of Inflation

Rate of Inflation has been rising continuously from the past couple of years in India. ‘Inflation rate’ has affected the lives of consumers, policy makers and the government officials because it has a great impact on stakeholders in the economy in different ways. Out of these three people affected, consumers have been hit the most which in turn hits the policy makers and people in the government. 

As for investors, most of them don’t realize the impact of inflation rate but investors can be affected by inflation rate in different ways especially for long term investments. The unawareness about this fact leads to low returns, hence, it is a mandate to know how it affects you and ways how you can beat it. You can get details on investment during inflation by clicking on the link below. 

Talking about investments, there are several things you look into before investing such as safety, capital, returns and liquidity. Amongst all these factors, people tend to forget the most important one i.e. inflation rate. However, in a country like India, debt instruments are most affected due to the economic conditions (inflation rate). But there is a solution to everything; indexation is a concept that is a must to know in such situations. But, the benefit of indexation applies to only long term investors.

To safeguard short term, we need to opt in for fixed income investments. Short term investments like monthly income plans is always a good idea during inflation. This is also a tax efficient way to invest as gains from all investments for over one year are tax free. The idea is to hitch onto something that is already going up with inflation. Also, you will not find this tough as the value of services and goods is always going up during inflation. 

To read the article, click >  http://bit.ly/weUjkk

This Valentine - Tie the Love Knot without affecting your pocket

Wedding is the most expensive affair India, and it is something that everyone has to spend on, in their lives. On wedding you don’t come to know how money flies, one finds it difficult to keep a track of money during this festive moment.  Speaking of wedding, how we can miss gold, in every Indian wedding making gold ornaments is a must! But as we know the increase in inflation rate has raised the standard of living and in return the weddings have become all the more expensive. Hence, an effective financial planning like mutual funds schemes are required whether you are planning your own or your child’s marriage.

When you are doing financial planning there are few points you should keep in mind. First thing is to identify is when the marriage is taking place, in other words, how much time do you have in hand and accordingly your spending will be decided. Similarly, this way, there are several steps involved in planning an effective financial structure (click on the link below, to know them in detail). The early you plan, the more effective your plan will be.

Coming back to gold the most important thing in a wedding according to Indian customs, hear from  Rajesh and Mithali, a married couple is talking about their upcoming daughter’s marriage, the role that gold plays and tips of how to come up with a good financial plan. According to them, discipline is the key, to carry on with your financial goal irrespective of ups and downs.

In India, parents are suppose to spend on their child’s wedding, however, to avoid any on the spot financial crises and to live your dream, saving for your own wedding is the best thing you can do. Read the case study of Sanjay Shah, a bachelor who manages to save a lump sum of money for his wedding.

There is much more you can learn this Valentine about money and saving up for your love. Just read the article: http://bit.ly/xA6C3q