UTI Nifty Exchange Traded Fund and UTI Nifty Next 50 Exchange Traded will be categorised as open-ended schemes tracking the Nifty 50 index
UTI Mutual Fund will revise the category of four open-ended exchange traded funds and an open-ended equity fund to comply with the Securities Exchange Board of India's guidelines, the fund house said in an addendum.
Come April 2, UTI Nifty Exchange Traded Fund and UTI Nifty Next 50 Exchange Traded will be categorised as open-ended schemes tracking the Nifty 50 index, while UTI Sensex Exchange Traded Fund will classified an as an open ended scheme tracking the S&P BSE Sensex.
The fund house has also modified the category and asset allocation of UTI Gold Exchange Traded Fund. The scheme will be classified as an open ended scheme, tracking gold and will invest 95-100 per cent in gold bullion and gold related instruments and investments, against investments of 90-100 percent at present, while money market instruments and other debt securities will be restricted to 5 per cent, instead of the current 0-10 per cent.
UTI - Long Term Equity Fund (Tax Saving), an open-ended equity scheme, will be classified as an open ended equity linked saving scheme with a statutory lock-in of three years, and tax benefit.
Also, the 'existing plan' of UTI - Long Term Equity Fund (Tax Saving) will be renamed as 'regular plan', the addendum stated.
The revisions comes in the wake of guidelines from Securities and Exchange Board of India on October 6. The altered norms require fund houses to recategorise all existing and future schemes into five broad categories and 36 sub-categories for ease in investingAll other features of the schemes remain unchanged.Not sure which mutual funds to buy? Download moneycontrol transact app to get personalised investment recommendations.