UTI Mutual Fund has bundled its three tax-saving schemes -- ELSS, retirement fund and ULIP in a plan called UTI Smart Plan to help investors avail the benefits of tax deduction under section 80C. UTI Smart Plan consists of three MF schemes - UTI Long Term Advantage Fund- Series V (ELSS), UTI Unit Linked Insurance Plan and UTI Retirement Benefit Pension Fund.
UTI Long Term Advantage Fund is 10-year close-ended ELSS. To differentiate this fund from open-ended ELSS, the fund will follow a focused strategy by concentrating on 20 to 30 stocks. Typically, open-ended ELSSs follow a more diversified strategy that could include over 50 stocks. On portfolio construction, the fund proposes to be overweight on infrastructure stocks and underweighted on banking, IT and pharma. UTI ULIP is the first insurance linked mutual fund product in the country. Launched in 1971, the scheme has more than 2.7 lakh investor accounts.
The scheme offers sum assured of up to Rs 15 lakh coupled with other benefits such as accident insurance cover and a balanced portfolio of debt and equity. The fund doesn’t charge allocation fee like other ULIPs.
UTI Retirement Benefit Pension Fund is a mutual fund linked retirement plan (MFLRP) and is essentially a debt oriented hybrid fund. Investors can decide asset allocation between these three funds on their own based on risk appetite and financial goals.