UTI Balanced Fund

UTI Balanced Fund is managed by Mr. Amandeep Chopra and Mr. V Srivastava. It’s a balanced fund investing between 40% to 75% in equity/equity related securities and the balance in debt (fixed income securities) with a view to generate regular income together with capital appreciation. If you have already invested in this scheme you can exit to invest in a better performing fund in this category.

Where does UTI Balanced Fund invest your money?

UTI Balanced fund is a hybrid fund which invests your money in both equity securities and debt securities. It has more than 74% exposure to equity and 25% exposure to debt and close to 1% exposure to cash and cash equivalents. Its equity portion has large cap bias which means most of your money will be invested in stocks of medium sized and small sized companies. UTI Balanced fund has 64.97% exposure to large cap companies 21.15% exposure to mid sized companies and 11.26% exposure to small sized companies.

Its debt portion has allocation in corporate debentures and government securities. It currently holds close to 1% of its assets in cash and equivalents such as T-bills, banker’s acceptance and money market instruments.

Suitable for what?

The following needs if occurring between 3 and 5 years:

  • Child's education
  • Marriage
  • Home Purchase

 

Not suitable for what?
  •    Long term needs
  •   Creation of wealth
How has UTI Balanced Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in January 1995, your value of investments would be around Rs 8.70 lakhs. If you had invested Rs. 1 lakh 5 years back you would have around Rs. 1.34 lakhs. The fund’s performance has not been similar to other funds in this category. It has been giving around 6.09% to investors who have stayed invested for 5 years.

Assume you had invested Rs 10,000 every month in UTI Balanced Fund through SIP since inception today you would have around Rs 7.72 lakhs.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Not Recommended
What are the charges applicable?

Exit load of 1% is charged if units are redeemed within a year from the date of allotment. No exit load applies for units withdrawn post one year. Expense ratio of UTI Balanced Fund is 2.08%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

What are the tax implications?

The returns in an equity mutual fund are absolutely tax free, provided you do not withdraw within 1 year.

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