Introduction
UTI Innovation Fund Direct – Growth is a mutual fund scheme that invests in innovation-oriented companies and disruptors with potential of delivering non-linear growth outcomes. The scheme was launched on September 25, 2023 and is open for subscription till October 9, 20231. The scheme follows an open-ended equity scheme following the innovation theme and has a benchmark of Nifty 500 TRI1. The fund manager is Mr. Ankit Agarwal.
The scheme intends to provide medium to long-term capital appreciation through investment primarily in growth and innovation-oriented equity and equity-related instruments. The scheme focuses on three pillars: innovation, growth, and quality. The scheme invests in companies that use innovation to enhance productivity, create environmental and social impact, have significant potential for growth, demonstrated track record of developing the market and/or gaining market share, and are financially strong with market leadership, robust business models, quality management and corporate governance.
The scheme is suitable for investors looking for a true-to-label innovation fund that is benchmark agnostic and backed by research expertise, seeking relatively high growth potential and willing to ride the underlying waves of innovation, and having a long-term horizon. The minimum application amount for the scheme is ₹5,000 for initial purchase and ₹1,000 for additional purchase. The exit load is 1% if redeemed/switched out within 12 months from the date of allotment, and nil thereafter.
Who can invest in UTI Innovation Fund Direct – Growth?
The UTI Innovation Fund Direct – Growth is open for investment to all categories of investors, such as resident individuals, non-resident Indians (NRIs), persons of Indian origin (PIOs), Hindu undivided families (HUFs), partnership firms, association of persons (AOPs), body corporates, banks, financial institutions, trusts, societies, etc. However, the scheme is suitable only for investors who have a high risk appetite and a long-term investment horizon. The scheme is not suitable for investors who are looking for regular income or capital preservation. The scheme is also not suitable for investors who are not comfortable with the volatility and uncertainty associated with innovation-oriented companies. Therefore, investors should carefully assess their risk profile, investment objectives, and financial situation before investing in the scheme.
What is the minimum investment amount for UTI Innovation Fund Direct – Growth?
The minimum investment amount for UTI Innovation Fund Direct – Growth is ₹5,000 for initial purchase and ₹1,000 for additional purchase. This means that you need to invest at least ₹5,000 when you first buy the units of the scheme, and at least ₹1,000 when you add more units later. You can invest in the scheme through online or offline modes, such as through the UTI Mutual Fund website, mobile app, or authorized distributors. You can also invest through platforms like Paytm Money, Groww, Zerodha Coin, etc. that offer direct plans of mutual funds. However, you should be aware of the risks and returns associated with the scheme before investing. The scheme is a high-risk, high-reward fund that may not suit every investor’s profile and goals. You should consult your financial advisor or planner before making any investment decision.
The eligibility criteria for UTI Innovation Fund Direct – Growth are as follows:
- The scheme is open for investment to all categories of investors, such as resident individuals, non-resident Indians (NRIs), persons of Indian origin (PIOs), Hindu undivided families (HUFs), partnership firms, association of persons (AOPs), body corporates, banks, financial institutions, trusts, societies, etc.
- The scheme is suitable only for investors who have a high risk appetite and a long-term investment horizon. The scheme is not suitable for investors who are looking for regular income or capital preservation. The scheme is also not suitable for investors who are not comfortable with the volatility and uncertainty associated with innovation-oriented companies.
- The minimum investment amount for the scheme is ₹5,000 for initial purchase and ₹1,000 for additional purchase. The minimum SIP investment amount for the scheme is ₹500123.
- The exit load for the scheme is 1% if redeemed/switched out within 12 months from the date of allotment, and nil thereafter.
What are the Documents Required
The documents required for UTI Innovation Fund Direct – Growth are as follows:
- KYC (Know Your Client) Form: This is a mandatory form that verifies the identity and address of the investor. You can download the KYC form from the UTI Mutual Fund website1 or from any of the KYC Registration Agencies (KRAs) such as CAMS, CVL, NSE, NSDL, etc. You need to fill in the details such as name, date of birth, PAN, address, etc. and attach the self-attested copies of your identity proof (such as Aadhaar card, passport, voter ID, etc.) and address proof (such as electricity bill, bank statement, rent agreement, etc.). You also need to submit a recent passport size photograph and sign across it. You can submit the KYC form along with the documents at any of the UTI Mutual Fund branches or KRAs or intermediaries.
- Application Form: This is the form that you need to fill in to invest in the UTI Innovation Fund Direct – Growth. You can download the application form from the UTI Mutual Fund website or get it from any of the UTI Mutual Fund branches or distributors. You need to fill in the details such as name, PAN, bank account details, investment amount, plan and option, mode of payment, nomination details, etc. You also need to sign the declaration and terms and conditions at the end of the form. You can submit the application form along with the payment instrument (such as cheque, demand draft, etc.) at any of the UTI Mutual Fund branches or distributors.
- Additional Documents: Depending on your category of investor, you may need to submit some additional documents along with the KYC form and application form. For example, if you are a non-resident Indian (NRI), you may need to submit a copy of your passport and visa or overseas address proof. If you are a Hindu undivided family (HUF), you may need to submit a copy of your HUF deed and PAN card. If you are a trust or society, you may need to submit a copy of your trust deed or registration certificate and PAN card. You can check the list of additional documents required for different categories of investors on the UTI Mutual Fund website or consult your financial advisor or planner.
Benefits of UTI Innovation Fund Direct – Growth
Some of the benefits of investing in UTI Innovation Fund Direct – Growth are:
- The fund invests in innovation-oriented companies and disruptors that use innovation to enhance productivity, create environmental and social impact, have significant potential for growth, demonstrated track record of developing the market and/or gaining market share, and are financially strong with market leadership, robust business models, quality management and corporate governance. These companies may offer non-linear growth outcomes and create new markets or disrupt existing ones.
- The fund is true to label and follows the innovation theme across sectors and industries. The fund is also benchmark agnostic and does not follow any specific index or sector allocation. This may give the fund more flexibility and higher active share to capture the opportunities arising from innovation.
- The fund is backed by research expertise and follows a rigorous investment process that focuses on three pillars: innovation, growth, and quality. The fund also aims to manage portfolio risks with a robust risk-assessment framework.
- The fund is suitable for investors who are looking for a true-to-label innovation fund that is benchmark agnostic and backed by research expertise. The fund is also suitable for investors who are seeking relatively high growth potential and willing to ride the underlying waves of innovation. The fund may also appeal to investors who have a long-term horizon and a high risk appetite.
However, investors should also be aware of the risks associated with the fund, such as market risk, innovation risk, scheme-specific risk, etc. The fund is not suitable for investors who are looking for regular income or capital preservation. The fund is also not suitable for investors who are not comfortable with the volatility and uncertainty associated with innovation-oriented companies. Therefore, investors should carefully assess their risk profile, investment objectives, and financial situation before investing in the fund.
FAQs for UTI Innovation Fund Direct – Growth
- What is UTI Innovation Fund Direct – Growth?
UTI Innovation Fund Direct – Growth is a mutual fund scheme offered by UTI Mutual Fund. It aims to provide long-term capital appreciation by primarily investing in equity and equity-related securities of companies that focus on innovation and technology-driven growth opportunities.
- Who manages UTI Innovation Fund Direct – Growth?
The fund is managed by experienced fund managers from UTI Mutual Fund who have expertise in selecting stocks of innovative and growth-oriented companies.
- What is the investment objective of this fund?
The primary investment objective of UTI Innovation Fund Direct – Growth is to generate long-term capital appreciation by investing in innovative companies across various sectors.
- Who should consider investing in this fund?
This fund is suitable for investors who have a moderate to high-risk tolerance and are looking for long-term wealth creation through investments in innovative and technology-driven companies. It is not recommended for investors with a short-term investment horizon.
- What is the minimum investment amount for this fund?
The minimum initial investment amount for UTI Innovation Fund Direct – Growth may vary, so it’s best to check with the fund house or your financial advisor for the most up-to-date information.
- Is there any lock-in period for this fund?
No, there is no lock-in period for UTI Innovation Fund Direct – Growth. Investors can redeem their units at any time, subject to exit load, if applicable.
- What are the tax implications of investing in this fund?
The tax implications of investing in this fund are subject to the prevailing tax laws and regulations in India. Typically, long-term capital gains on equity mutual funds are tax-free up to a certain limit, while short-term capital gains are taxed at a specific rate. It’s advisable to consult with a tax advisor for personalized tax guidance.
- How can I invest in UTI Innovation Fund Direct – Growth?
You can invest in this fund through various channels, including the UTI Mutual Fund website, authorized distributors, or by contacting the nearest UTI Mutual Fund office. Online investment through the fund’s website or a registered mutual fund platform is the most convenient way.
- Can I switch from other mutual funds to UTI Innovation Fund Direct – Growth?
Yes, you can switch from other mutual funds to UTI Innovation Fund Direct – Growth. This can be done by filling out the necessary switch request forms provided by your mutual fund distributor or by using the online facilities offered by the fund house.
- How can I track the performance of UTI Innovation Fund Direct – Growth?
You can track the performance of the fund through the UTI Mutual Fund website, financial news portals, or by receiving regular updates from the fund house. The Net Asset Value (NAV) of the fund is updated daily and can be used to monitor its performance.
- What is the risk associated with investing in UTI Innovation Fund Direct – Growth?
Like all equity-oriented funds, UTI Innovation Fund Direct – Growth carries market risk. The value of your investment can fluctuate based on the performance of the underlying stocks in the portfolio. It is essential to assess your risk tolerance and investment horizon before investing in this fund.
- Are there any charges associated with investing in this fund?
Yes, there may be charges such as expense ratio, exit load, and distributor commission, which can impact your overall returns. It’s advisable to review the fund’s offer document for detailed information on charges.
