UTI Retirement Fund (Formerly UTI Retirement Benefit Pension Fund)

Investment Amount for UTI-Retirement Benefit Pension Fund (UTI-RBP)

*Note: Unitholders are required to maintain a minimum investment balance of Rs.500.

Asset Allocation for UTI-Retirement Benefit Pension Fund (UTI-RBP)

Who can Invest in UTI-Retirement Benefit Pension Fund (UTI-RBP)

The following entities can invest in UTI-Retirement Benefit Pension Fund:

1. Non-resident or resident adult Indian individuals, either on a single/joint/survivor basis (not exceeding 3 members in total)
2. Eligible trusts, bodies corporate, and societies
3. Foreign nationals residing in India

*Note: This list is indicative. Prospective investors are advised to consult with a financial advisor to ascertain whether this scheme is suitable to their needs.

NAV Disclosure and Benchmark for UTI-Retirement Benefit Pension Fund (UTI-RBP)

The net asset value (NAV) of this scheme will be computed by determining the value of the assets under this scheme and reducing this from the liabilities of the scheme, taking into account the provisions and accruals.

The net asset value per unit will be calculated by dividing the NAV of the scheme by the overall number of units issued and outstanding as on the valuation day.

The NAV, once computed, will be published in a minimum of two newspapers that are circulated nationwide every business day. The NAV will also be available on the website if the fund house (www.utimf.com) and on the AMFI website (www.amfiindia.com) at 9:00 pm on every business day.

The UTI-Retirement Benefit Pension Fund offers redemption and subscription of units, subject to the completion of the lock-in period, on every business day, except during the book closure period. The benchmark index for this scheme is CRISIL Short Term Debt Hybrid 60+40 Fund Index.

UTI-Retirement Benefit Pension Fund (UTI-RBP) Fund Manager

Mr. Amandeep Chopra and Mr. V Srivatsa are the fund managers of this fund. Mr. Amandeep Chopra, who has been a fund manager for this scheme since December 2006, is responsible for managing the debt portfolio, while Mr. V Srivatsa, who has been the fund manager for this scheme since November 2009) is responsible for managing the equity portfolio.

Investment Restrictions of UTI-Retirement Benefit Pension Fund (UTI-RBP)

As per the guidelines specified by the Securities and Exchange Board of India (SEBI), certain investment restrictions for this scheme are as follows:

1. The scheme will not invest over 10% of its net asset value in debt instruments issued by a single issuer which is rated not below the investment grade by an authorised credit rating agency.
2. The scheme will not invest over 10% of its net asset value in unrated debt instruments that are issued by a single issuer, and the overall investment in such instruments will not exceed 25% of the net asset value of the scheme.
3. Debentures will attract investment restrictions as applicable for debt instruments
4. The funds of the scheme that may be invested in the short-term deposits of scheduled commercial banks will need to abide by certain specified guidelines.
5. The mutual fund will not offer loans for any purpose.
6. If investments are intended to be long-term in nature, UTI Mutual Fund will get the securities that are purchased by a particular scheme transferred in the scheme's name.
7. This scheme will not invest in any fund of fund scheme.
8. The mutual fund, under all of its existing schemes, cannot own over 10% of any organisation's paid-up capital that carries voting rights.
9. The scheme will not invest over 5% of its net asset value in unlisted equity-related instruments and equity shares.
10. The investments made by this scheme in any other mutual fund scheme will need to comply with Regulation 44(1), Seventh Schedule of the SEBI (MFs) Regulations.
11. If the need for liquidity arises, the scheme may choose to invest in Government of India Securities.
12. The total value of "illiquid securities" shall not be over 15% of the overall assets of the scheme.

*Note: A full list of investment restrictions can be found in the Scheme Information Document.

Dividend Policy of UTI-Retirement Benefit Pension Fund (UTI-RBP)

If distributable surplus is available, the scheme may distribute dividends at intervals as decided by the trustee. In most cases, for investors under the age of 58 years, the dividend, if any, will get reinvested in the scheme automatically.

The trustees might also opt to credit the earning/dividend accruals to either the capital reserve or revenue reserve, keeping the interests of the unitholders in mind.

Other facilities under UTI-Retirement Benefit Pension Fund (UTI-RBP)

A few additional facilities that are offered under the systematic investment plan (SIP) are as follows:

1. Step Up Facility: Investors who opt for this facility can increase the initially chosen SIP amount at certain specified intervals.
2. Switching Facility: Investors are provided the option to switch from one scheme to any other eligible scheme during the investment tenure, without terminating the existing systematic investment plan.
3. Any Day SIP: Under this facility, investors are given the option to choose any date in the month to start the SIP.

Why you should Invest in UTI-Retirement Benefit Pension Fund (UTI-RBP)

UTI-Retirement Benefit Pension Fund is ideal for those individuals who are looking to secure their retirement years by investing in a financial instrument that offers long-term capital appreciation. Given that this product has a moderately high-risk level, this scheme is best suited to those open to taking risks. This scheme also offers tax benefits up to a maximum of Rs.1,50,000 lakh as per Section 80C of the Income Tax Act, 1961. Thus, individuals who are looking to avail tax benefits and generate a significant corpus that will provide periodic income during one's retirement years can invest in UTI-Retirement Benefit Pension Fund.

GST rate of 18% applicable for all financial services effective July 1, 2017.