UTI Long Term Equity Fund offers Twin benefits

Due to the current COVID-19 pandemic, Ministry of Finance as a relief measure has extended the deadline of tax saving investments in Equity Linked Saving Schemes (ELSS) from 31st March 2020 to 30th June 2020 for the FY2019-20.

ELSS Mutual Funds are best known for the tax benefits they provide. Further, the advantages of investing in an equity securities are also added to it. ELSS enables for deduction of up to Rs. 1.50 lakhs on total taxable income each financial year, it may also provide benefit of wealth creation to fulfil one’s future requirements/goals. Also, ELSS comes with a Lock-in period of 3 years only. Which may minimise the risk of market volatility in the short term.

UTI Long Term Equity Fund (Tax Saving) is one such offering which is creating wealth for its investor since Dec-1999. The Fund attempts to invest in businesses having healthy return ratios, cash flows and run by sound managements, with an aim to provide superior risk adjusted return.

UTI Long Term Equity Fund (Tax Saving) may be suitable for investors looking for funds that are not large cap biased as the lock-in period of 3 years the fund allows for a longer investment horizon for the portfolio, thus raising the probability of generating higher risk-adjusted returns. Further, investment of up to Rs. 1.50 lakhs in this scheme is eligible for tax benefits under sec 80C of the Income Tax Act 1961.