UTI CCP Advantage Fund

UTI Children's Career Plan (CCP) Advantage is managed by Mr. Kaushik Basu. Investment can be made for children upto the age of 15 years. This plan is no different from the regular hybrid funds, despite terms like Scholarship option and Growth option. This is not a bad fund to stay with, provided your goal is less than 5 years away.

Where does UTI CCP Advantage Fund invest your money?

UTI CCP Advantage fund is a hybrid fund which invests your money in both equity securities and debt securities. It has more than 93.91% exposure to equity and 2.48% exposure to debt and close to 3.61% 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 large sized companies. UTI CCP Advantage fund has 78.07% exposure to large cap companies 15.54% exposure to mid sized companies and 6.4% exposure to small sized companies.

Its debt portion has allocation in corporate debentures and government securities. It currently holds close to 4% 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 CCP Advantage Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in January 2008, your value of investments would be around Rs 1.70 lakhs. The fund’s performance has been similar to other funds in this category. It has been giving around 7.03% to investors who have stayed invested for 5 years.

Assume you had invested Rs 10,000 every month in UTI CCP Advantage Fund through SIP since inception today you would have around Rs 7.34 lakhs. 

How will UTI CCP Advantage Fund perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to do well. When the companies do well their stock prices follow their performance. So if you expect the economy to grow at 8% then you can expect top performing mutual funds to give you returns in excess of 14%.

Mutual fund schemes that have exposure to mid sized companies tend to show results when their bet on few companies comes true. We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Recommended
When to exit?

Withdraw when your goals are close to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

How frequently you need to monitor the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What are the charges applicable?

Exit load of 4% is charged if units are redeemed within a year from the date of allotment. Exit load of 3% is charged if units are redeemed after one year but within 3 years from the date of allotment, and an exit load of 1% is charged if units are redeemed after 3 years but within 5 years from the date of allotment. No exit load applies for units withdrawn post 5 years. Expense ratio of UTI CCP Advantage Fund is 1.40%. 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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