Mutual Fund Schemes for the Elderly Launched by UTI

Mutual funds may be subject to market risks, but they are still one of the best investment options available today. Not only they provide inflated-adjusted returns, but also the benefit of rupee-cost averaging.

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Perhaps it was the realization of mutual funds’ growing popularity, that compelled UTI, India’s sixth largest fund house, to roll out two different mutual fund schemes under the umbrella “UTI Family” that are catered towards the elderly.
The mutual fund schemes Wealth Builder Fund and MIS Advantage Plan are tailored for earning young professionals who want to ensure that their parents get regular payouts through their investments.

Wealth Builder Fund Vs MIS Advantage Plan

While the Wealth Builder Fund is a 100% equity-fund (mutual fund which is mainly invested in stocks), the MIS Advantage plan is more of a debt-oriented scheme in which as much as 75% of the funds can be invested in debt (fixed income investments such as in bonds, treasury bills, etc.) and the remaining in equities.

Payout in UTI Family Schemes

Both the schemes under the UTI Family investment are payable via Systematic Withdrawal Plan (a pay-out system in which the investor can withdraw funds at predetermined intervals). However, the minimum sum that can be withdrawn under the SWP is Rs. 10,000. Both the parents of the investor are eligible to be declared as the beneficiaries who will receive the money directly in their bank accounts.

UTI Family Investment is a good pocket-friendly option for the young professionals who want their parents to live a comfortable life during their twilight years. Investing in either of the two schemes can easily ensure a comfortable retirement for the parents.