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.
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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.
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More about the investment plans
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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.
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How much can be withdrawn under the Systematic Withdrawal Plan?
A minimum sum of Rs. 10,000/- can be withdrawn under the Systematic Withdrawal Plan.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.
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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.