UTI SIP - Top UTI SIP Mutual Funds Schemes for SIP Investment

Launched in the year 1963, Unit Trust of India (UTI) Asset Management Company, is one of the oldest and largest asset management company in India. The company has over 1 crore investor’s base and offers an extensive range of fund option to the investors.  As a one-stop solution for all the investment needs, the investors can choose to invest in fund options ranging from equity, debt, money market, etc. UTI SIP provides an opportunity for the investors to create wealth for the future and achieve the long-term and short-term financial goals of life.

As a lucrative option of investment, the investors can choose to make an investment in any of the UTI Mutual fund schemes both through the lump-sum method and by the process of UTI SIP. 

 The UTI systematic investment plan (SIP) is flexible and can be availed in a very simple and hassle-free way. Therefore, it is a remunerative investment choice for those investors who want to create corpus by investing in the mutual fund. According to the existing rules, an investor can choose to invest through UTI SIP for the term period of their own choice. One can start investing in UTI SIP with a minimum amount of Rs.500-Rs1,000 and can invest up to the maximum as much as they want.

How Does UTI SIP Investment Works

UTI SIP is one of the most efficient and simplest ways to invest in a mutual fund scheme.   The investors are required to submit all the important details, in order to start the systematic investment plan. UTI SIP plan works similarly as other SIP plans. In UTI SIP investment the individual is required to invest a particular amount at UTI SIP mutual fund scheme at specific intervals of time. According to one’s own choice and on the basis of the type of scheme chosen by the investors, they can decrease or increase the tenure of SIP investment. With a minimum investment limit of Rs.500, the investors can choose to invest in UTI SIP for a long-term in order to gain maximum return on investment and create wealth in a long-term.

Benefits of Investing in UTI SIP

Offers Disciplined Investment

UTI SIP investment provides an opportunity for the investors to strategize their investment goals yearly in order to achieve the financial goals in short-term and long-term. One of the perks of investment in SIP plan is that it offers a disciplined approach to the investors towards investment. Under UTI SIP plan a fixed amount can be invested periodically by the investors in the fund. The disciplined investment method helps the investors to plan their investment goals for the whole year and to create a financial cushion in the long-term. As one can choose to invest any amount as per their own suitability, UTI SIP is considered as one of the best long-term investment options with periodic investment and disciplined approach.

Offers the Benefit of Rupee Cost Averaging

On the basis of the market fluctuation, the fund prices of UTI SIP changes on a daily basis. However, the amount of investment in SIP is fixed. Since different units are purchased at a different rate and the invested amount is constant the investors can buy more units when the share market price is low and the less units when the share market price is high.  

Offers Flexibility of Investment Tenure

UTI SIP  offers the benefit of flexibility to the investors. Under the UTI SIP plan, the investors can choose the tenure of investment according to their own requirement and suitability. The minimum time period of investment offered by UTI SIP  fund is 6 months, whereas, there is no limit on the maximum tenure of investment. Thus, the investors can stay invested up to the maximum tenure of their own choice. Besides the benefit of changing the investment tenure, the scheme also offered the flexibility to discontinue any ongoing SIP plan without any penalties. To discontinue the existing SIP plan, the investors just require to login to the mutual fund investment account.

The Flexibility of Investment Amount

Along with the flexibility of investment tenure, the UTI SIP plan also offers the flexibility of investment amount. One can start investing in UTI SIP with a minimum amount of Rs.500 whereas; the SIP plan does not provide any limit on the maximum investment amount. According to one’s own requirement and suitability, investors can choose the amount of investment.

Offers the Flexibility of Power of Compounding

The key to creating wealth is to invest early and regularly. A small amount of money invested regularly can grow significantly over the long term. This helps in creating wealth with your own contribution and returns compounded over the years. 

Best Performing UTI SIP Plans

UTI Banking and Financial Services Fund

This is an equity oriented scheme which aims to provide capital appreciation to the investors by making an investment in the company stocks engaged in banking and financial services activities. This is a profitable fund option for investors who have a high-risk appetite and wants to gain maximum return on investment over a long-term period.

UTI Equity Fund

This is an open-ended equity fund which aims is to provide capital appreciation to the investors by investing majorly in equity, equity-oriented securities, convertible and non-convertible bonds, companies debentures, etc.  This is a great option of investment for those investors who wants to gain a high return on investment over a long-term period and have a high-risk appetite.

UTI Infrastructure Fund

This is an equity scheme which aims to provide long-term and medium-term capital appreciation along with the benefit of the regular income distribution. Under this plan option, the money is majorly invested in equity and equity related instruments of the companies. However, the return on investment totally depends on the performance of the fund. This plan is a good option of investment for investors who has a good knowledge of the market and who has the ability to take the risk.

UTI Crore Equity Fund

This is an open-ended equity fund which aims to provide capital growth to the investors by making the investment in equity and equity-linked securities of mid-cap and large-cap companies. The fund majorly invests in equity securities of top 100 stock by market capitalization. However, the return on investment totally depends on the performance of the fund. This plan is a good option of investment for investors who has a good knowledge of the market and who has the ability to take the risk. 

UTI Long-Term Equity Fund

This is an open-ended equity linked saving scheme which offers the dual benefit of investment cum tax savings.  Under this fund option, the money is invested in fully convertible bonds/debentures, equities, and warrant of companies. Along with the benefit of investment, the returns on long-term equity funds are eligible for tax exemption under section 80C of the Income Tax Act up to the maximum limit of Rs.1,50,000. This fund option is beneficial for individuals who have a moderately high-risk appetite and wants to gain a return on investment over a long-term period along with the benefit of tax exemption.

UTI MNS Fund

This is an equity oriented scheme which the focuses on offering capital appreciation to the investors by investing predominantly in liquid stocks and stocks of the multinational corporations. The fund collected under this scheme is invested in equity and equity-related securities. As the risk profile of UTI MNS fund is moderately high, this fund is a profitable investment option for investors who wants to gain a higher return on investment and have a high-risk appetite.

UTI Value Opportunity Fund

This is an equity oriented scheme which focuses to generate income distribution and capital appreciation by predominantly investing the amount in equity and equity instruments.  The fund majorly focuses on capitalizing the opportunities rising in the market due to continues change on India economy and moving its investment to various different sectors as per the prevailing trend change. However, the return on investment totally depends on the performance of the fund. This plan is a good option of investment for investors who has a good knowledge of the market and who has the ability to take the Things to keep in mind before starting a SIP

  Investment Horizon

Although SIPs are flexible in nature,  it does not mean that the horizon of investment can be shortened. It totally depends on the investment goals of the investors and the type of funds they choose in the SIP portfolio. SIPs with a longer tenure of investment generally reap better wealth accumulation over a long-term period.

  Risk Appetite

Prior to investing in SIP, it is very crucial to understand the risk appetite.  The risk appetite of an individual is determined based on many different factors such as liquidity needs, age, investment goal, nature of employment and investment tenure. By knowing one’s own risk appetite the investors can choose an apt SIP plan which can match according to their financial goals.

  Exit Load

In SIP, every installment is considered as a new investment. Thus, if the investor withdraws the investment within the predefined time then an exit load is charged in the Net Asset  Value (NAV).  

  Volatility

SIP is a type of mutual fund investment, thus it is subject to the market risk. Like all Mutual Funds, SIP is also subject to market risks. However, it is also considered as one of the best investment instrument to stand market volatility due to the benefit of rupee cost averaging and long-term investment option. Therefore, it is very important to read the documents of the scheme carefully before making an investment.  

How does UTI  SIP Calculator Work?

UTI SIP Calculator is an online tool, which helps the investors to compute the SIP returns over a specific period of time. the returns are calculated on the basis of the principal amount of compound interest. The investors are just required to enter the amount they wish to invest, choose the tenure of investment, and the UTI SIP calculator will quickly compute the returns for them. SIP calculator is a great investment tool as it helps the investors to decide the amount they want to invest in MF, as they might want to increase the amount of investment for much higher returns in the future.

Let’s take an example:

If a person invests Rs.10,000 for the term period of 10 years, then here is how the SIP investment will grow.

Monthly investment- Rs.10,000

Investment Period: 10 years

Total invested amount: Rs.12,00,000

Approximate long-term Growth rate:15%

Expected returns according to SIP calculator: Rs.27,86,573

Net Profit: Rs. 15,86,573 (Absolute Return= 132.2%)

Eligibility Criteria for Investment in UTI SIP Plans

In order to invest in UTI SIP Plan, the investors are needed to submit the below-mentioned information.

• Complete the process of registration and Know Your Customer (KYC) process.
• Address proof documents.
• Submit the Aadhar Card and PAN card.