Taking care of parents is one of the key considerations of financial planning for many clients. Keeping this in mind, UTI Mutual Fund has introduced a new facility called UTI Family (Father and Mother I Love You) which lets your client transfer systematically a fixed monthly amount every month from his investments to the bank account of his parents.
Investors can transfer amount to either of the parents through SWP. UTI Family does not allow investment in parents’ name, but the money withdrawn goes to them.
This facility tries to incorporate emotional aspect in the financial products. “We have products where the parents invest for their children. However, we do not have any product through which children can invest for their parents. We tried to plug this hole by adding this new facility,” says R. Raja, Head – Products at UTI Mutual Fund.
Currently, the facility is available in two schemes - UTI MIS Advantage Plan, a debt-oriented hybrid scheme and UTI Wealth Builder Fund, an equity-oriented hybrid fund. “People who want the comfort of debt can go for the MIS Advantage Plan and investors who can digest volatility can go for the Wealth Builder Fund,” says Raja.
Raja said that UTI MF is planning to include this facility in UTI Balanced Fund. Raja, however, is of the opinion that investors should better off use this facility in debt-oriented funds as they give regular cash flows and are less volatile. In future, the fund house may include the facility in other scheme, he said.
So far, the fund house has witnessed good traction for the facility in its debt fund, as it is a no-load fund, says Raja.
While MIS Advantage Plan manages AUM of Rs.940 crore, Wealth Builder Fund has an AUM of Rs.887 crore.
