UTI Schemes

• Unit Scheme 1964: is a perpetual scheme, each unit with a face value of Rs.10, transferable and repurchased by the UTI. Dividend income from the UTI qualifies for deduction of income tax under Section 80L of the Income Tax At and eligible for Wealth Tax exemption up to Rs.5 lakhs. Reinvestment facility as an alternative to dividend distribution is available.
• Unit linked Insurance Plan(ULIP) 1971: Schemes of 10 year and 15 year periods are available both with life insurance and accident insurance. The target amount is a maximum of Rs.60,000 and the age limit is 55 years. The life coverage is secured from the LIC by the contributions of UTI. The contributions of the insured are payable yearly or half yearly.
• Capital Gains Unit Scheme(CGUS): Investment in part or in full of the capital gains due to sale of any long term capital assets in the Capital Gains Units Scheme would qualify for exemption from capital gains tax under Section54A of the Income tax Act. This investment is to be made within 6 months of the date of the sale of capital assets and there is no maximum limit. This is to be held for a minimum period of 3 years. Dividend income along with others is exempt under Section 80L of Income tax Act up to Rs.115,000 and from the wealth tax up to Rs.5 lakh
• Children’s Gift Growth Plan: Units with a face value of Rs.10 are gifted to a minor child under this scheme, maturing at the age of 21 by the child. Gifts up to Rs.20,000 were exempt from gift tax, at that time and Rs.30,000 now.
• Various Close ended Schemes: Such schemes as monthly income unit scheme, growing income unit scheme etc, were started in various years since 1982 for meeting the varying needs of investors.
• Master Shares floated for Indian investors and India Fund and India Growth Fund etc. for foreign investors: The Mutual Fund Subsidiary Unit Scheme (Master Shares) 1986 are quoted on the stock exchanges and are treated as shares. A third offshore fund was initiated in 1989-90 with the help of a Japanese securities firm and AB, in addition to the above two.

The first 3 schemes account for 70 % of the total investible funds of the UTI. The second venture capital fund managed by the Technology Development and Information Company of India Ltd. Was set up in 1990wit a contribution of Rs.35 crores from the UTI and contributions from other financial institutions. This helps the financing of Greenfield ventures from new entrepreneurs to promote industrial growth.