I want to know about the UTI Retirement Benefit Pension fund. How would you rate this fund?
-Ashok Kumar
It is a decent, conservative fund that has an allocation of 60 per cent to fixed income and 40 per cent to equity. This is an old fund, which was launched in 1994. It is one of the two so-called pension funds, although it doesn’t have the features that we think are necessary for a pension product. However, it does come with a tax benefit under Section 80C, wherein investments of up to Rs 1 lakh in this fund would give you a tax break. In the fund’s long history, it has earned an annualised return of 10.5 per cent. This performance is average when compared to other conservative debt-oriented vehicles, but it’s not bad if you look at the fund as a standalone investment, especially since it also entails a tax break.
This article was originally published on May 14, 2012.
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