UTI Mutual Fund, launched new mutual fund scheme on 21st December 2017 – UTI Long Term Advantage Fund – Series VII. It is a close-ended Equity Linked Saving Scheme (ELSS) with tenure of 10 years from and including the date of allotment, with option of withdrawal after 3 years from the date of allotment, gives the benefit of liquidity.

UTI Long Term Advantage Fund – Series VII scheme pitches for a distinctive portfolio play on structural drivers emerging on India’s rural landscape along with income tax benefit under 80C of the Income Tax Act, 1961. This is one of the reasons why so many are looking up to this new UTI mutual fund NFO.

Quick Facts : UTI Long Term Advantage Fund – Series VII NFO

NFO Name UTI Long Term Advantage Fund – Series VII NFO
NFO Launch Date 21 December 2017
Last Date for Application 21 March 2018
Minimum Investment Amount ₹ 500
Fund Type Equity Linked Saving Scheme (ELSS)
Nature Close-ended fund
Tenure 10 years (Option of withdrawal after 3 years from the date of allotment)
Fund Manager Mr. Sachin Trivedi
Benchmark S&P BSE 500

How to Invest in UTI Long Term Advantage Fund – Series VII  NFO 2018

If you want to invest in UTI Long Term Advantage Fund – Series VII NFO, you have to follow the steps below.

  1. Log in to your Groww account. If you are a new user, sign up first– it is completely online and takes 2-3 working days.
  2. Decide the amount you would like to invest in UTI Long Term Advantage Fund – Series VII NFO.
  3. Email Groww support on support@groww.in with a request or call / Whatsapp on 9108800604.

When investing in this NFO, you must remember, it is a close-ended mutual fund. Once you invest, you will not be able to touch the money until the lock-in period of 3 years. Also, you, need to invest at least ₹ 500 in it. Invest only if you don’t need the money for that duration.

UTI Long Term Advantage Fund – Series VII NFO

UTI Mutual Fund is promoted by the four of the largest Public Sector Financial Institutions as sponsors, viz., State Bank of India, Life Insurance Corporation of India, Bank of Baroda and Punjab National Bank with each of them holding a 18.24% stake in the paid up capital of UTI AMC.

UTI Mutual Fund is one of the premier mutual funds in India and caters to the investment needs through a suite of mutual fund schemes. It recently announced the launch of UTI Long Term Advantage Fund – Series VII NFO.

This NFO is launched on 21st December 2017 and will accept subscriptions till 21st March  2018. UTI Long Term Advantage Fund – Series VII is a close-ended ELSS fund, and Units of the scheme are not listed in any Stock Exchange in view of a redemption facility being offered to investors after initial Lock-in-Period of 3 years from the date of allotment as per ELSS guidelines.

UTI Long Term Advantage Fund – Series VII NFO : Objective

The investment objective of the scheme is to generate capital appreciation over a period of ten years by investing predominantly in equity and equity-related instruments of companies along with income tax benefit.

But there is no assurance that the objective of the Scheme will be realized and the Scheme does not assure or guarantee any returns.

UTI Long Term Advantage Fund – Series VII NFO : Fund Category

UTI Long Term Advantage Fund – Series VII is categorized as a ELSS fund. ELSS is a category of mutual fund that the government created to encourage long-term investing in equity. In order to do improve equity participation the government allowed investment in equity based mutual funds to be tax deductible through ELSS schemes.

An ELSS fund manager invests in a diversified portfolio, predominantly consisting of equity and equity related instruments that carry high-risk and have the potential to deliver high-returns. ELSS is a dedicated mutual fund scheme that allows investors to save tax. It also provides an opportunity for long term capital appreciation.

UTI Long Term Advantage Fund – Series VII is a close ended fund. Close ended funds are mutual fund units that are offered to investors for a limited period only, that is, during the period of Initial Public Offer. These funds have a fixed maturity period.

Mutual fund house offering ELSS have very professional fund manager team having expertise to select the right equities with optimum diversification in portfolio.

Success of these funds depends on the amount of time invested by fund house in researching and finding the right dark horse stocks in small cap segment and stable stocks among large cap segment.

Read More15 Things to Know About ELSS Funds

UTI Long Term Advantage Fund – Series VII NFO : Plans Available

The Scheme offers following Plans : Regular Plan and Direct Plan. The Direct Plan and Regular Plan will have a common portfolio and the only difference is that the direct plan investments will not be routed through a distributor.

These Plans further offers the following Options :

  • Growth Option
  • Dividend Option with Payout Option only

In case no option is indicated in the application form, then the default option will be the Growth Option.

UTI Long Term Advantage Fund – Series VII NFO : Asset Allocation

UTI Long Term Advantage Fund – Series VII scheme will contain Equity & Equity related securities from 80 % – 100 % ( High Risk instruments) and Money Market & Debt instruments between 0 – 20 % ( Low to Medium Risk instruments) depending on market scenarios and conditions.

UTI Long Term Advantage Fund – Series VII NFO : Benchmark

The fund will be bench-marked to S&P BSE 500 index. The S&P BSE 500 index is designed to be a broad representation of the Indian market. Consisting of the top 500 companies listed at BSE Ltd., the index covers all major industries in the Indian economy.

UTI Long Term Advantage Fund – Series VII NFO: Fund Manager

This fund will be managed by Mr. Sachin Trivedi having a plethora of experience in financial market of India.

Mr. Sachin Trivedi

Mr. Sachin Trivedi is Senior Vice President and designated as Head of Research & Fund Manager, Equity at UTI AMC Ltd. He is a B.com graduate from Narsee Monjee College of Commerce, Mumbai and holds a post-graduate degree in management (MMS) from the K. J. Somaiya Institute of Management Studies & Research, Mumbai University. He also holds a CFA charter since 2004 conferred on him by the CFA Institute, USA.

He began his career in June 2001, with UTI. Sachin has 16 years experience in research and portfolio management. In research he has specialized in Auto OEM, Utilities, Capital Goods and Logistics.

Funds Managed by Mr. Sachin Trivedi

UTI Long Term Advantage Fund – Series VII NFO : Minimum Investment

Minimum investment that can be made per investor in this NFO is ₹ 500 and in multiples of ₹500 thereafter.

However, as per section 80C of the Income Tax Act, 1961, the tax benefit will be available only upto a maximum amount of ₹ 1,50,000 ( along with other prescribed investments ).

UTI Long Term Advantage Fund – Series VII NFO : Risk

UTI Long Term Advantage Fund – Series VII NFO 2018 falls into the Moderately High Risk category as per the company scheme information document indicating that the principal invested by the investors will be at moderately high risk.

Some of the risks associated with the fund are trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal.

The fund is a ELSS fund and therefore are of high to medium risky and volatile investment instruments as compared to Large cap fund and debt mutual fund category due to their exposure in high performing equities.

These funds have high growth potential and give high returns on investment as compare to large cap funds and is best suited for investors with moderate risk appetite or for long term investors. The best thing about these funds is they are among best tax saving instruments available in Financial market in India.

As a ELSS fund, invests across stocks in different market capitalization (i.e., Large capMid cap and Small cap) based on the view of the fund manager, the role of fund managers is of immense importance.

UTI Long Term Advantage Fund – Series VII NFO : Salient Features

The theme of UTI Long Term Advantage Fund – Series VII NFO is based on structural reform in Rural Indian Economy. The new investment destination of choice for Rural transformation, is an inevitable & irreversible process and can be only fast trackable.

Fund house believes that this theme is a multi-year theme and a strong return generator too, with a power packed team of Mr. Sachin Trivedi as fund manager.

Finance minister has recently rolled out Union Budget 2018. This budget designed to help distressed farmers and rural areas while boosting growth, jobs and private investment and this UTI Long Term Advantage Fund – Series VII NFO is launched to take advantage of this opportunity.

UTI Long Term Advantage Fund – Series VII NFO Scheme have good liquidity and will offer redemption / Switchover on every business day at NAV based prices after the Lock-in-Period of 3 years from the date of allotment.

More UTI Long Term Advantage Fund – Series VII NFO is an ELSS fund. Amongst all the tax savings schemes ELSS fund is the only one which gives the proper feel of pure equity and may give you best returns on your investment as compared to other tax saving instruments.

Read More: All You Need to Know About ELSS funds. 

Key reasons to invest in UTI Long Term Advantage Fund – Series VII NFO

UTI Long Term Advantage Fund – Series VII is the fund for long term capital growth and for investors who wants to invests in equity and equity related securities that are likely to benefit from recovery in the rural economy along with income tax benefit sunder Section 80C of the Income Tax Act, 1961. Key reasons for choosing this fund are :

Time Horizon : Longer investment horizon raises probability of higher returns

Lock-in period : Helps you tide over the near term volatility

Investment Strategy : Distinctive portfolio focused on structural drivers of rural landscape in India

Positioning : Complements current investor portfolios with a differentiated investment thesis

Most experts believe that Budget 2018 has delivered a massive ₹ 14.34 lakh crore push on rural development to reduce the gap between rural Bharat and urban India. This, in their view, will propel India towards realizing its 8% plus GDP growth rate dream. Which will be a great boost for UTI Long Term Advantage Fund – Series VII in years to come.

Other Options

If you think UTI Long Term Advantage Fund – Series VII is too risky for you, you can invest in less risky equity mutual funds like large-cap funds and balanced funds.

These are the best ELSS fund options for 2018 are :

  1. Aditya Birla Sun Life Tax Relief 96
  2. Reliance Tax Saver (ELSS) Fund
  3. IDFC Tax Advantage (ELSS) Fund

Read more about these tax savings funds.

To look at some of the best performing funds from every category of mutual funds, check out Groww 30 best mutual funds to invest in 2018.

Happy Investing!

Disclaimer: the views expressed here are of the author and do not reflect those of Groww.