It is an equity mutual fund scheme offered by UTI Mutual Fund. The fund of this scheme is currently managed by Swati Kulkarni and introduced to investors in India on 1 January 2013. Its AUM is around Rs 2,195 crore, and the latest level of NAV is around 211.27 as of 31 January 2020.
It is a valuation of high-risk fund investments. You can invest in UTI MNC Fund Direct-Growth through SIP, and minimum SIP investments are Rs. 500. The minimum investment in lamps is 5000. For units with more than 10 percent of the investment, the exit load will be charged 1 percent within 12 months.
It aims to be a net growth fund by investing mainly in multinationals firms and other liquid stocks.
Here you can see UTI MNC Fund Direct-Growth scheme return performance
• 2.92% in the last year.
• 33.60% in the previous three years.
• 183.09% since the commencement of the scheme.
• You can start an SIP investment with a minimum of Rs 500.
The fund mainly invests in stocks of multinational corporations (MNC). Multinationals firms have shown operational, and capital allocation capability to be a thematic set of shares, strong cash flow generation, brand/technology strengths, UTI MNC Fund Direct-Growth scheme gives high RoE / RoCE profiles with both domestic and export growth opportunities.
The fund is committed to the high potential for investing in companies with low financial leverage and leading pricing in their respective sectors.
• 98.95% exposure to Indian stocks.
• 50.51% in large-cap stocks
• 38.36% in midcap stocks
• 10.08% in small-cap stocks.
There are tax implications in%
- You redeem 15% before one year
- 10% to pay LTCG tax after one year on 1 lakh + returns in a financial year
What is the suitability of investing in UTI MNC Fund Direct-Growth funds?
If you have macro-trend knowledge and want to take select bets to achieve higher returns than other equity funds, even if the overall market is outperforming, these investors should also be prepared for the possibility of moderate to steep losses for their investments.
Taxation of Income: Capital gains
- If you sold mutual fund units after one year from the date of the start of the investment, and earn up to Rs 1 lakh in the financial year, the amount will be exempt from tax. If you get more than Rs 1 lakh, the amount will be taxed at a rate of 10%.
- If you are selling your mutual fund unit within one year from the beginning of the date of investment, then any amount you get will be taxed at the rate of 15%.
Conclusion: It is a fund that invests primarily in multinational corporate shares. We think investors should avoid funds with such a defined investment mandate. Instead, they should invest in multi-cap funds that give the fund management team full freedom to invest in companies from which it expects maximum returns. But if you invest, all you have to do is through the SIP route.
Author Bio: Kelly Wilson is an experienced and skilled Business Consultant and Financial advisor in the USA. She helps clients both personal and professional in long-term wealth building plans. During her spare time, she loves to write on Business, Finance, Marketing, Social Media. She loves to share her knowledge and Experts tips with her readers.