UTI Long Term Advantage Fund Series II

UTI has come out with a Mutual Fund called "UTI Long Term Advantage Fund Series II" which is a 10-year close-ended Equity Linked Savings Scheme with tax benefit. Upto Rs One lakh invested will give the investor a tax benefit under the Section 80C of the Income tax act. The Investment objective of the scheme is to provide medium to long term capital appreciation along with income tax benefit.

It will endevaour to invest in equities of well managed high quality companies that have the potential to grow at a reasonable rate in the long term. It will also invest in emerging growth companies that are believed by the Asset Management Company to have the potential to offer appreciation potential greater than the growth in the relevant stock market indices, in the long term. It will also aims to build and maintain a diversified portfolio

Asset Allocation
Equity: 80%–100% of the assets
Debt & Money Market Instruments: 0% – 20%

Scheme details
Issue Close Date March 19th
Type of Fund - 10 year close ended

Options - Growth Option and Dividend Option with Payout and Reinvestment
Minimum Amount - Minimum initial investment is Rs.500/- and in multiples of Rs.500/- thereafter with no upper limit. However, as per section 80 C of the Income Tax Act, 1961, the tax benefit will be available only upto a maximum amount of Rs.1,00,000/-
Redemption - Redemption Facility The Scheme will offer redemption / switch-out of units on any business day before the maturity but after the expiry of initial lock-in-period of three years period from the date of allotment at the relevant redemption price.

Entry Load: The scheme, being a close-ended scheme, is not permitted to charge Entry Load.
Exit Load : Nil. In accordance with SEBI (Mutual Funds) Regulation, NFO expenses not exceeding 6% of the amount mobilised, will be charged to the scheme and will be amortised over a period of 10 years. If the investor opts for the redemption before the completion of 10 years proportionate unamortized portion of the NFO expenses outstanding as on the date of the redemption shall be recovered from such investors.
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