UTI Launches Mutual Fund Plans For The Elderly

Mutual Funds are the most lucrative investment options available to investors looking for wealth creation. Mutual Funds are instruments that give investors inflation-adjusted returns.

If you thought Mutual Funds were only good for building wealth, think again. Mutual Funds will now also help you financially support your ageing parents. We’ll tell you all you need to know about it.

Unit Trust of India (UTI), India’s sixth largest fund house, presently has two Mutual Fund schemes under the investment product ‘UTI Family’. (The name of the product is a clever play on the words Father and Mother I Love You).

UTI’s UTI Family scheme has two investment plans offering investors a growth option on their investments: the MIS Advantage Plan and Wealth Builder Fund which aim to provide payouts to investors’ parents on a regular basis.

UTI’s new Mutual Fund schemes give earning children the opportunity to make investments with a view to provide financial assistance and monetary support to their elderly parents.

Additional Reading: How To Plan For Retirement In Your 50s

The launch of these schemes looks promising as it gives investors a wider choice of options if they are looking to create an emergency fund to cater to the financial needs of their aging parents.

Additional Reading: Managing Finances When You Have Children And Parents

More about the investment plans

The MIS Advantage Plan is primarily a debt-oriented investment scheme in which up to 75% of funds will be invested in debt and the balance in equities. The Wealth Builder Fund is an equity fund.

Additional Reading: Why Debt Funds Are Better Than Fixed Deposits

Mode of payout

Investment payouts on the two schemes under UTI Family will be through a Systematic Withdrawal Plan (SWP).  

Who are eligible as beneficiaries?

The mother or father of the first unit holder of the fund is eligible to be listed as beneficiary under the investment. Investments in UTI Family schemes allow the investor to transfer a fixed sum of money through a Systematic Withdrawal Plan to either of their parents’ bank accounts.

Thinking of building retirement funds? Read this if you are on your way to retirement.

How much can be withdrawn under the Systematic Withdrawal Plan?

A minimum sum of Rs. 10,000/- can be withdrawn under the Systematic Withdrawal Plan.

Periodicity of withdrawals

The Systematic Withdrawal Plan is effected on a monthly basis on the first business day of the month.

Additional Reading: How Mutual Funds Work

Now, with UTI’s new elderly parent-friendly investment options, show your folks that you’ll always be there for them. Invest wisely today to promise them a secure financial future.

For more information and advice on anything about finances and investments, you know we have you covered.