The Times Of India - Mumbai, 2/23/2020 Cropped page Page: 11

These funds passivelytrack the performance

of the underlying index.Since these are not activelymanaged, these fundscharge very low fees toinvestors compared to other

actively managed funds.

These funds carryonly the market-

related risks but eliminatethe fund manager-relatedrisks to investments. So ifan investor wishes to

participate in equities butwants to eliminate therisks associated withactively managed equityfunds, he/she couldchoose an equity indexfund. These funds givereturns matching theunderlying index.

Index funds could beused by first timeinvestors as a safer bridgetowards creating longterm wealth through theequity market route.

SWATANTRA KUMAR EXPLAINS: Yes, investments inpension funds by mutual funds qualify for taxsavings under section 80C of the income tax laws.These funds invest a major portion of the corpus indebt instruments and the balancce, with a maximumlimit of 40%, in equities. These funds are categorizedas debt funds and carry modderately high risk. Alongwith tax incentives, these funds could be used forbuilding one’s retiremennt corpus.

STEPS TO DOWNLOADAND SCAN A QR CODE

Download QR codeapp on your phone

Run app and scanthe QR code

Your smartphonewill read the code &navigate to thedestination

Scan the QR code to knowthe rights and responsibilities

of an empowered mutualfund investor.

Scan this QR codeto calculate the amount you need toinvest to achieve all the milestones

you have set for yourself

Scan this QR code to knowhow to control your

emotions while investing.

DISCLAIMER To know about the KYC documentary requirements and procedure for change of address, phone number, bank details, etc. please visithttps://www.utimf.com/servicerequest/kyc. Please deal with only registered Mutual funds, details of which can be verified on the SEBI website under"Intermediaries/market Infrastructure Institutions". All complaints regarding UTI Mutual Fund can be directed towards service@uti.co.in and/or visitwww.scores.gov.in (SEBI SCORES portal). This material is part of Investor Education and awareness initiative of UTI Mutual Fund.

Do you still gift your partner onspecial occasions to expressyour love?

B) No A) Yes

Share your answer via SMS TypePoll<SPACE>Your answer (A OR B) to 5676756

READER’SPOLL

How to buy thesensex, nifty in one go

— This article has been exclusively created for UTI SWATANTRA

There is no harm in living a frugal life and one must certainly not shyaway from embracing such a lifestyle. Frugality is one of the basicnecessities for creating wealth. If you choose a restaurant withoutchecking the price on the menu, you may end up spending more thanwhat you can afford; whereas, by knowing your budget and choosing asuitable restaurant smartly, you will ensure that your financial plans arenot disrupted. Thus, for a smooth financial life, you must be frugal andsmart with your decisions.

RESULT

In the last edition, we asked you — Do you checkthe rates on food delivery apps before deciding onthe restaurant to treat your friends??

B) No A) Yes

DO INVESTMENTS IN PENSIONFUNDS BY MUTUAL FUNDSQUALIFY FOR TAX SAVINGS?

DEMYSTIFIER

Index fundsare mutual

funds that invest inan index bypurchasing all thestocks in the sameproportion as in aparticular index. Sothe performance ofthese funds nearlymirrors that of theindices they track,but for a smalldifference calledtracking error.

Index funds are moresuited for risk-averse

investors and thoseexpecting predictablereturns, provided these

schemes meet the riskprofile of the investors.These funds also offer amplescope for diversification toone’s equity portfolio. IL

LUST

RATI

ONS:

SACH

IN V

ARAD

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Index funds allow this unique opportunity that could be used byfirst time investors for wealth creation

‘NOMINATE TO PASS ON YOUR FINANCIALASSET TO THE RIGHT PERSON’

Saurabh AnilkumarChaudhari

An investor spends anincredible amount of

time deciding on his in-vestments, tenure andreturns that he/she willachieve. And if the in-vestor, unfortunately,passes away then in suchcase the nominee se-cures his wealth. That’swhy it is important for

every investor to have anomination, be it a mutu-al fund or any other fi-nancial investment. Reg-istering a nominee en-sures that your financialassets are passed on tothe right person.

If the investor dies andhasn’t nominated any-one, then the legal heirswill have to go throughthe process of producingall kinds of certificateslike death certificates,proof of relation etc, andnot to mention that thewhole process is reallytiresome.

In case of mutualfunds, you can nominateup to three people, whocan be registered at thetime of purchasing the

units. While filling in theapplication form, there isa provision to fill in thenomination details. Evena minor can be a nomi-nee, provided theguardian is specified inthe nomination form.

Nomination in mutualfunds is at folio level andall units in the folio willbe transferred to thenominee(s). If an investormakes a further invest-ment in the same folio,the nomination is appli-cable to the new unitsalso.

— The write is an IFAThis article has been

exclusively created forUTI SWATANTRA

GURU SPEAK 1

Rajendra S Sa-talkar

The Unionbudget

2020-21 ad-dresses thelong pendingrequirement ofpersonal taxslab modifica-

tion. It came as caveat ie., you for-get deductions and enjoy lower taxslab, or remain with earlier taxregime and continue to enjoy taxdeductions under section 80C.

Small investors, many a times, areunable to manage savings under sec-tion 80C, they could migrate to newregime now and pay less tax. (UptoRs 5 lakh no tax, between Rs 5 to 7.5lakh 10% tax ). Secondly, the insur-

ance cover of Rs 5 lakh on bank de-posit, earlier it was Rs one lakh, is abig relief for small investor.

The impact of change in tax slabunder new regime means more mon-ey at the hands of common manalong with exemption to save for de-ductions will shift us to spendingeconomy rather than saving. This ismore suitable for young tax payerswho spend more and save less. Now,the catch is one cannot go back toold tax regime from new one if heopts for the same. The person willhave to think twice before migratingto new tax regime.

If a person doesn’t wish to saveunder 80C and enjoy lower tax slab,it will boost sectors like FMCG, Auto,white goods, entertainment andmore, resulting in better GDP num-bers. Better GDP number means re-

warding stock markets and happy in-vestor.

Budget gives an indication thatslowly our country will migrate todeduction less system in years tocome. This will also mean that thetax filing process will become sim-pler day by day. Our governmentwants more number of people to fileIT returns, thus creating a situationsuch as gradually removing deduc-tions, TDS on mutual funds divi-dends, etc. In order to reclaim TDSon the dividend, one has to file re-turn. Overall, we can say that thisbudget is pro small investor.

— The writer is a founder, AcumenWealth Managers

This article has beenexclusively created for

UTI SWATANTRA

GURU SPEAK 2

‘FY 20-21 BUDGET IS PRO-SMALL INVESTOR’

SUNDAY TIMES OF INDIA, MUMBAI FEBRUARY 23, 2020 11

CCI NG 3.7 Product: TOIMumbaiBS PubDate: 23-02-2020 Zone: MumbaiCity Edition: 1 Page: TOIMRSVP User: vijay.malekar Time: 02-22-2020 22:20 Color: CMYK

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To know about the KYC documentary requirements and procedure for change of address , phone number, bank details, etc, please visit https:/ /www.ufimf.com/servicerequest/kyc Please deal with only registered Mutual Funds, details of which can be verified on the SEBI website under "Intermediaries/market InfrastructureInstitutions " . All comp laints regarding UTI Mutual Fund can be directed towards service@uti co. in and/or visit www. scores gov in (SEBI SCORES portal(.This material is part of Investor Education and Awareness Initiative of UTI Mutual Fund.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS , READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.