The UTI MNC Fund is an open-ended equity mutual fund managed by UTI Mutual Fund AMC. The fund house is one of the best asset management companies in the country. The mutual fund scheme is aimed at investors with a high-risk tolerance and hopes to invest in multinational companies and corporations operating in India. Such businesses derive a large proportion of their sales from various international hubs.
Features of UTI MNC Fund
The following are some of the features of the UTI MNC Fund.
- It is an open-ended equity fund, where investors can invest at any time or collect their investments in the scheme.
- For the first time on 29 May 1998, the fund was introduced for individual investors.
- In this sector, individual fund houses are no longer ready to give entry load to investors who are investing in the scheme for the first time. The UTI MNC fund entry load is zero for now.
- The exit fee associated with the UTI MNC Fund is at a redemption position of 1 percent. Nevertheless, this aspect only applies to units that are being redeemed well 364 days before allocation.
By balancing stock selection with investment targets, the scheme will recognize not only the global presence of enterprises but also those investments that are irrespective of areas within the portfolio.
What is the TAX RATE of UTI MNC FUND?
If the unit is sold after one year from the date of purchase, then long term capital gains tax may apply. If your total long-term capital gain is more than 1 lakh, then the current tax rate is 10 percent. No cess/surcharge will be included. If it is sold one year before the date of purchase, short term capital gains tax will apply. The current tax rate is 15%. 15% does not include any termination/surcharge.
In the past year, the fund manager updated the portfolio less frequently than peers. (i.e., the fund manager held portfolio stocks/bonds for a more extended period than peers)
What is the risk level of the UTI MNC Fund
UTI MNC funds are predominantly invested in equity and their derivatives. It ensures that investments made under this system face traditional equity investment risks such as significant investment risks.
What is the tax consideration for UTI MNC Fund
The UTI MNC Fund primarily invests in MNC equities and equivalent derivatives, for which various business interests exist in India and worldwide. Nevertheless, the primary investment of this fund is in domestic equity, ensuring that all investments made towards UTI MNC funds are subject to taxation equity investment law.
The units will be subject to short-term capital gains in the case of the scheme from the date of allotment before withdrawing or reversing the units of the fund held for one year or less. If the units of the scheme are held for more than one year from the date of allotment, then the transition is subject to long term capital gains.
As per current rules, Equity STCG is estimating a tax rate of 15 percent, which mainly applies to the profits from specific investments. Currently, India’s equity investment is not outside the purview of LTCG. It ensures that if the buyer redeems the units after keeping them for 12 months or longer, the return is taxable at the rate of 10%. Investor-collected dividends are entirely tax-free for the investor is invested in the fund and are not valid for distribution tax on dividends.