Direct Plan- The direct plan of the UTI MNC Fund is being held back due to too many routes through which investors can access the policy. Subsequently, direct mutual fund plans are available only through the fund house. Still, availability is required for online and offline modes. Although this version of the scheme has a higher unit price than the regular plans of the scheme, some investors like them due to the lower expense ratio.
The cost ratios of various direct plans mean that in the long run, this fund version has the potential to generate higher returns than average plans. In addition to the dividend option, investors of direct plans also have a growth option.
Regular Plan– When an investor receives middle man securities market services in the form of brokers, they may need to go regular plan for UTI MNC fund direct growth schemes. This version is the most in-demand as it can be used not only through fund houses but also through other intermediaries. While a high expense ratio is noted for a regular plan as opposed to a direct plan under the same fund, investors are also given a lower NAV.
This plan is in line with the long-term appreciation of money. The primary instruments are equity investment and associated MNC shares.
Growth Option– With the growth of UTI MNC funds, the growth option is characterized by withholding all interim payments as long as the investor retains the mutual fund investment. The benefit from that scheme coming from existing assets is not paid to the investor; instead, they are invested on an additional attractive basis. It means that the fund will continue to increase its AUM for years. That, in turn, will increase the fund’s NAV. Thus, investors who buy units at lower NAVs will later convert those units to expensive NAVs. In this way, investors with growth options can book profits on investment in mutual funds. This option is perfect so for investors who need appreciation for investment rather than their income.
Dividend Option- Dividend payouts are what you, as an investor, would earn if the fund had a surplus available as a result of earned income. In situations where the dividend option offered by the UTI MNC Fund provides a dividend, investors receive their payouts based on the units. The dividend is also coming from the fund’s current AUM. Here means that the NAV unit will experience a proportional decrease.
Where should you invest?
Investing in UTI Dividend Yield Fund is a good option. The dividend yield mutual fund periodically distributes some of the profits generated by the fund to its investors. The tax reduction features are unprecedented. Not only are the dividends generated by the schemes not taxable, but there is also no dividend distribution tax. Apart from this, long term capital gains, i.e., gains on assets of more than one year are not taxable. If you want to invest for a period of less than one year, then the dividend option is best.
UTI seeks to provide value-added services to its customers with stable and consistent returns. The UTI Dividend Yield Fund is an open-ended equity fund that aims to generate long-term capital gains and dividend distribution. It is a fund that invests primarily in companies with high dividend yields, which is essentially a financial measure that indicates how much dividend a company pays each year compared to its share price.
How can you invest in UTI Dividend Yield Fund online?
If you are a new investor in UTI, then you can take advantage of their investment option online. To get your PIN number, all you have to do is register online, download the required forms, fill them, and send them to the UTI office along with the required documents. Once you have your unique PIN code, you can invest in any of the online schemes.
Conclusion: UTI MNC fund direct growth scheme invests primarily in multinational corporate stocks to diversify through differentiated offers. Multinational corporations demonstrate operational efficiencies, smooth cash flow, and technical skills, producing productive domestic and export ROE profiles. The fund exhibits long run out and efficiency with a low volatility benchmark. Most of the raised funds go to the stocks of multinational corporations and many other liquid shares. These funds raised with the scheme will be invested in equity and related instruments.
