UTI ULIP(G)

Some of the important features of UTI-Unit Linked Insurance Plan are as follows:

Investment Amount for UTI-Unit Linked Insurance Plan

*Note: Investors are required to maintain a minimum balance of Rs.5,000. Only if the minimum balance is maintained will partial redemption be allowed after the completion of 7 years and 10 years for the 10-year plan and 15-year plan, respectively.

Asset Allocation for UTI-Unit Linked Insurance Plan

Who can Invest in UTI-Unit Linked Insurance Plan

Individuals between the age of 12 years and 55.5 years can invest in the 10-year plan, while individuals between 12 years and 50.5 years can invest in the 15-year plan. Investment in UTI-Unit Linked Insurance Plan is open to the following entities:

1. Adult men
2. Adult women with an independent and regular source of income
3. Minors over 12 years through their parent
4. Investment can be made by any individual for their spouse and/or children over 12 years of age
5. Physically handicapped persons
6. Individual foreign nationals, provided the conditions specified in the Scheme Information Document are met

NAV Disclosure and Benchmark for UTI-Unit Linked Insurance Plan

The net asset value of a scheme will be computed by determining the value of the particular scheme's assets and deducting this amount from the total liabilities of the concerned scheme, after taking into account the provisions and accruals. The NAV will be calculated and declared separately for each plan and option under the scheme. The formula to calculate the NAV is as follows:

NAV = Fair or market value of a scheme's investments + current assets - current provisions and liabilities/No. of outstanding units under the scheme as on the date of valuation.

Once computed, the NAV will be declared in a minimum of 2 newspapers on every business day. The net asset value will also be available on www.utimf.com and www.amfiindia.com by 9:00 p.m. on every business day.

The scheme offers redemptions and subscription of units on every business day. The benchmark index for this particular scheme is CRISIL Debt Hybrid (60:40).

UTI-Unit Linked Insurance Plan Fund Manager

Mr. Amandeep Chopra and Mr. Ajay Tyagi are the fund managers of UTI-Unit Linked Insurance Plan. Mr. Chopra is responsible for managing the debt portfolio, while Mr. Tyagi manages the equity portfolio. Mr. Sharwan Kumar Goyal is the fund manager for overseas investments.

Investment Restrictions of UTI-Unit Linked Insurance Plan

1. The scheme will not invest over 10% of its net asset value in unrated debt instruments that are issued by a single issuer.
2. Debentures will attract the same investment restrictions that are applicable to debt instruments.
3. This scheme will not lend any term loans.
4. The mutual fund cannot own over 10% of any firm's paid-up capital with voting rights.
5. This scheme will not invest in any fund of fund scheme.
6. The scheme will not invest in unlisted securities of a group company or associate of the sponsors, securities issued via private placement by a group company or associate of the sponsors, or in listed securities of a group company of the sponsors if it is over 25% of the total assets.
7. The scheme cannot invest over 10% of its net asset value in equity-related instruments/equity shares of any company.
8. If there is a need for liquidity, the scheme can invest in state government/Government of India securities
9. The total value of illiquid securities under the scheme cannot exceed 15% of the net assets of the scheme.
10. Any investments made by this scheme in any other mutual fund schemes will need to be in accordance with certain specified SEBI (MFs) regulations.

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

Dividend Policy of UTI-Unit Linked Insurance Plan

The income that is accrued or earned will be invested back into the scheme at the prevailing NAV rate as on the date fixed for distribution. Thus, this scheme will not pay dividends to investors under normal circumstances. That being said, UTI AMC may, however, choose to distribute income earned through the income that is accrued to the scheme and/or through the balance in revenue reserve, at its discretion.

Other facilities under UTI-Unit Linked Insurance Plan

A few facilities that are offered to those investing in the UTI-Unit Linked Insurance Plan are as follows:

1. Systematic Investment Plan: Unitholders are offered the Quarterly Systematic Investment Plan (QSIP) and the Monthly Systematic Investment Plan (MSIP) options under UTI-ULIP.

1. Systematic Withdrawal Plan (SWP): The Systematic Withdrawal Plan facility will be offered to investors on and after the maturity of the plan. InvestorS can choose the amount of monthly/quarterly/bi-annual/yearly payment option, subject to the minimum withdrawal limit that is applicable to SWP.

1. Systematic Transfer Investment Plan (STP): Investors can avail STP facility under this scheme.

Why you should Invest in UTI-Unit Linked Insurance Plan

UTI-Unit Linked Insurance Plan is an ideal choice for any individual who is looking for a financial instrument that will serve as a life cover and will also provide the concerned person the means to earn market-linked returns over a period of time. Further, UTI-Unit Linked Insurance Plan also provides tax benefits to investors up to a maximum of Rs.1,50,000 under Section 80C of the Income Tax Act, 1961. Thus, any individual who wishes to save on tax can also invest in this plan/fund.

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