UTI RETIREMENT BENEFIT PENSION FUND

Transcription

1 An open ended notified tax savings cum pension scheme Performance track record of more than 22 years Portfolio mix of debt (for providing stability) and Equity (for providing growth opportunities) Opportunity to save higher tax under Sec 80 C of Income Tax 1961, as per prevailing tax laws. Convenience of Annuity payout with Systematic Withdrawal Option UTI RETIREMENT BENEFIT PENSION FUND (An open-ended notified tax saving cum pension scheme with no assured returns) July 2017 This product is suitable for investors who are seeking*: - Long term capital appreciation - Investment in equity instruments (maximum 40%) and debt and money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.

2 Research & Economist PMS, Retirement Solution & Offshore Mutual Fund About Our Investment Management Team (Fixed Income) 2 Amandeep Chopra Head of Fixed Income MBA Total Exp: 26 yrs With UTI MF: 26 yrs Sudhir Agarwal Fund Manager MBA & CFA Total Exp: 13 yrs With UTI MF: 8 yrs Ritesh Nambiar Fund Manager MBA, CFA & FRM Total Exp: 12 yrs. With UTI MF: 9 yrs Sunil Patil Fund Manager MFM & M.Com Total Exp: 27 yrs. With UTI MF: 27 yrs Amit Sharma Assistant Fund Manager CA,FRM Total Exp: 8 yrs. With UTI MF:8 yrs Manish Joshi Fund Manager MSc, MFM Total Exp: 20 yrs With UTI MF: 20 yrs Shilpita Guha CIO MSc (Economics), MBA Total Exp: 20 yrs With UTI MF: 20 yrs Rahul Aggarwal Portfolio Manager BE, MBA (Finance) Total Exp: 8yrs With UTI MF: 1 yrs Meghna Shah Economist MBA (Finance), MA (Economics) Total Exp: 8yrs Siddharth S. Research Analyst MBA (IB), CFA Total Exp: 7 yrs Richa Tripathi Research Analyst MBA (Finance) Entire Exp: 4 yrs

3 About Our Investment Management Team (Equity) 3 Investment Managers Swati Kulkarni, CFA FM Domestic Equity Total Work Exp: 26 Years With UTI: 25 Years Lalit Nambiar, CFA FM Domestic Equity Total Work Exp: 23 Years With UTI: 10 Years Sanjay Dongre FM Domestic Equity Total Work Exp: 23 Years With UTI: 23 Years Vetri Subramaniam Head Equity & Fund Manager Total Work Exp: 25 Years UTI MF: Less than a year Ajay Tyagi, CFA FM Domestic Equity & Offshore Funds Total Work Exp: 17 Years With UTI: 17 Years V Srivatsa FM Domestic Equity & Offshore Funds Total Work Exp: 17 Years With UTI: 15 Years Kaushik Basu FM Domestic Equity Total Work Exp: 34 Years With UTI: 34 Years Research Team Sachin Trivedi, CFA FM Domestic Equity & Head of Research Total Work Exp: 16 Years With UTI: 16 Years Tracks Capital Goods, Auto, Logistics Amit Premchandani, CFA FM Domestic Equity & Sr. Analyst Total Work Exp: 12 Years With UTI: 8 Years Tracks Banks, NBFCs, Cement Ritesh Rathod, CFA FM Domestic Equity & Sr. Analyst Total Work Exp: 11 Years With UTI: 11 Years Tracks Technology, Pharmaceuticals, Real Estate Sharwan Goyal, CFA FM Overseas Investments & Portfolio Analyst Total Work Exp: 11Years With UTI: 11 Years Kamal Gada, CFA Research Analyst Total Work Exp: 12 Years With UTI: 9 Years Tracks Energy, Fertilizer, Chemicals, Media and Infra construction Vishal Chopda, CFA Research Analyst Total Work Exp: 9 Years With UTI: 6 Years Tracks FMCG (Staples), QSR, Retail, Consumer Durable Parag Chavan, CFA Research Analyst Total Work Exp: 7 Years With UTI: 5 Years Tracks Metals & Mining, Utilities, Building Materials, Sugar, Healthcare, Hotels Preethi R S Research Analyst Total Work Exp: 5 Years With UTI: 5 Years Tracks Auto Ancillaries, Insurance, HFC & NBFCs

4 Fixed Income Investment Process 4 Internal Inputs External Inputs Board of Directors (Internal Norms/Delegation) Scheme Offer Document (Investment objective/guidelines) Dealing Team Provides market inputs on Call market, G-sec & Corp. Debt Debt & Economic Research Reports Inputs from Strategic Partner Fund Managers & Investment Committee Meeting & Conference Calls Inputs from UTI Research Team Investment Decision Newswire & Bloomberg Review Mechanism Control Mechanism /Function I Compliance I Risk Management I I Audit I Execution Independent Dealing team I Risk Management I I Fixed Income Steering Committee I I Meeting with Board of Directors I

5 Investment Universe & Portfolio Construction (Equity) 5 INVESTMENT PROCESS LED BY CONVICTION & STYLE CONSISTENCY INVESTMENT UNIVERSE 350 COMPANIES INVESTMENT UNIVERSE About 350 companies, spanning large, mid & small market capitalisation. SCREENING THE UNIVERSE UTI PROCESS SCREENING THE UNIVERSE UTI PROCESS Objective Factors Operating Cash Flow Return on Capital/Equity Subjective Factors Management Competence Growth Prospects This is a comprehensive and ongoing feature of Investment process. PORTFOLIO CONSTUCTION PORTFOLIO CONSTRUCTION Based on the Fund Mandate & Internal Prudential investment norms Considerations for Valuations, Sector Weights Market Cap bias & Active Share

6 Risk Level Product Positioning 6 Diversified Equity Funds Sector Funds Thematic Funds Positioned as Debt oriented Hybrid Fund with Min 60% into Debt and Max 40% into Equity Index Funds Hybrid & Specialty Funds UTI Retirement Benefit Pension Fund Monthly Income Funds Debt Funds Ultra Short Term & Arbitrage Funds Liquid Fund Return Level

7 Retirement Planning A perspective 7 Its not only about leisure travel, golf and grand children Its not just creating a nest egg Its not a deferred planning It is an empowerment towards seeing life s all possibilities Money harmony, peace of mind, health richness & Joyful moments through a well backed up Retirement plan

8 Road to Retirement 8 60 Yrs Married Adult Parents with or without children Pre retirement Retirement Spending years Young adult Consumption 25 Yrs Child s Education Housing Child s Marriage

9 Retirement Planning Key Concerns 9 Medicare cost Medical Inflation far outpaces overall Inflation. The healthcare inflation in India is 15% a year compared to overall inflation of 9%-10%. ( rate increase in% ) Angioplasty- 58% Prostate surgery- 68% Cataract - 50% Inflation The potential threat which erodes purchasing power. The average inflation in the country has been around 10% plus in the last 5 years. Longevity Life expectancy in the country has gone up in last decade by 5 years. This is due to better diet and immunization. But a long life increases the chance of disease burden. Withdrawal The amount the retiree takes from saving or investment each year has a decisive impact on the sustainability of retirement corpus. There could be incident where the kitty may fall short in the middle of the journey. Data source: money today, % increase in medicare in absolute terms

10 The changing face of Retirement 10 Job longevity and hence a higher degree of retirement security Job shuffle is common, indecisive work longevity Shorter life expectancies on average Higher life expectancies Relatively lower medical care cost Growing cost of medical & healthcare Relatively Lower retirement income needs Joint Family Structure Uncertainties in terms of social security cover Nuclear family structure

11 What do you aspire in your sunset years 11 To continue with the lifestyle you are currently used to, To adequately provide for unseen events To go for unfulfilled dreams - Leisure travel, Mansion etc However, keep the following in mind Desired Lifestyle will decide the corpus required Retirement is closer than you can think of

12 What should be the size of the nest egg? 12 Experts say one may require around 70% - 80% of your final working years annual income each year to meet your retirement needs, Case illustration - Mr. Kumar is a 40 yrs old working executive and he plans to retire at the age of 60 yrs. He needs to build a financial support package to be utilized 20 years hence. Step 1 Estimation of current needs Suppose Mr. Kumar s current annual income is Rs. 5 Lacs and he saves around Rs. 1 loc. Hence, he will require 4 lacs annually to maintain and meet the current needs Step 2 Adjustment of Inflation As a second step. Mr Kumar needs to arrive at the time period for which nest egg is to be built up. Further he has to take into account the inflation for next 20 years. Assuming 8% average annual inflation rate, the inflation adjusted amount would be, Rs. 4,00,000 *( (1.08)^ 20) = 18,64,000 lacs (This is amount Mr. Kumar would require every year to enjoy his current lifestyle. Step 3 Estimating Nest egg based on life expectancy Since Mr. Kumar has estimated 20 yrs post retirement life, he would require around, Rs. 18,64,000 * 20 = Rs. 3,72,80,000 This is a basic calculation and user of this information should not consider it as guidance or recommendation towards investment decision. User is advised to consult their investment advisor for his/her investment decision.

13 Are you saving enough? 13 Targeted Amount Saving Required Today How much are you saving Annually Monthly 1 cr 84,882 6,696??? 3 crs 2,54,647 19,789??? 5 crs 4,24,411 32,982??? Calculation methodology: Targeted amt mentioned is hypothetical, Annual & Monthly amount arrived through present value annuity formula, Interest considered 15% Time period assumed- 20 years This is for illustration purpose only and user of this information should not consider it as guidance or recommendation towards investment decision. User is advised to consult their investment advisor for his/her investment decision.

14 Consider inflation also! 14 Rs.500 today is not the same as Rs.500 in the year 2020 or Money s purchasing power changes by the mere passage of time due to, Inflationary forces Consumption preferences The uncertain nature of the future The Human life value factor

15 Impact of Inflation The impact of Inflation value of savings over a period of time Today 5 yrs 10 yrs 15 yrs 20 yrs The Impact of Inflation monthly expenses growing over a period of time 0 Today 5 yrs 10 yrs 15 yrs 20 yrs The illustration of the impact of inflation expense / savings - Inflation considered at 5% on a monthly basis, Time Period assumed 20 years This is for illustration purpose only and user of this information should not consider it as guidance or Recommendation towards investment decision. User is advised to consult their investment advisor for his/her investment decision.

16 And the gap Today 5 yrs 10 yrs 15 yrs 20 yrs Expenses Gap on account of rising expense and deceasing value of savings based on previous slide This is for illustration purpose only and user of this information should not consider it as guidance or Recommendation towards investment decision. User is advised to consult their investment advisor for his/her investment decision.

17 Investment option used for Retirement Planning 17 Property Fixed Deposit Public Provident Fund Pension Policies from Insurance companies Gold Pension Funds Mutual Funds

18 Constructing the portfolio 18 Wealth accumulation & Nest egg creation Protection & Safety of income Fixed (Annuity) Income (Bonds & Cash) Income & Growth (Large caps) Growth (Large & Mid Caps) Aggressive growth (Alternatives, International funds & Small caps) 1-5 yrs 6-10yrs yrs yrs 25 yrs plus Years to retirement This is a suggestive portfolio approach for illustration purpose only. User is advised to consult his / her investment advisor for his/her investment decision.

19 Getting started with savings & Investment 19 Saving Make saving a daily /monthly priority Set a savings goal. Work towards it Set a timeline. Track your progress Investment Protecting the value of investment Add to the value & investment better than inflation Capital / Wealth creation

20 Mistakes to avoid in Retirement Planning 20 Underestimating the longevity Ignoring rising cost of health care Not going for long term planning Delaying the Plan Not saving and investing enough Relying on company s pension plan Ignoring tax implications

21 Get going early 21 Who will save more by 60 yrs of age Start Now Saved ` 10000/- per month from the age 30 to 60 Start later Saved ` 10000/- per month from the age 35 to 60 Cost of Delay 2.27 Crores Lakhs A difference of Rs. 6,00,000/- in amount invested made an enormous to the end corpus. (assuming a monthly compounding rate of 10%. Payment at the beginning of the period) This is for illustration purpose only and user of this information should not consider it as guidance or recommendation towards investment decision. User is advised to consult his /her investment advisor for his/her investment decision.

22 Advantage Mutual Fund 22 Long term capital growth Tax efficiency Systematic investment plan Mutual Funds Flexible liquidity (Lump Sum or SWP) Multiple options to choose from Special features like switch & SWP SWP Systematic withdrawal Plan

23 In Summary, 23 Retirement Planning - a holistic process Investor s individual assessment is of paramount importance An early step taken becomes a milestone in sunset years Saving & Investing - The key building blocks to the planning Mutual Funds - a steady long term vehicle to retirement planning

24 UTI Retirement Benefit Pension Fund Fund Snapshot 24 Type of scheme An open end notified tax savings cum pension scheme with no assured returns Fund Inception 26 th December, 1994 Current Asset Allocation (% to NAV) Equity : 40 ; Debt : 54 ; NCA : 6 Benchmark Crisil Debt Hybrid (60:40) Fund Manager Mr. Amandeep S. Chopra (Debt portfolio) B.S.c. MBA [FMS Delhi] Mr. V Srivatsa (Equity portfolio) - C.A., ICWA & MBA (IIM Indore) Minimum Investment # The minimum amount of each investment that can be made in the scheme is `500/- (purchase value). While there is no upper limit upto which any amount can be invested in the scheme in any year, Asset Allocation Instruments Debt (including securitized debt) Equity & Equity related instruments Indicative Allocation (% of Total Assets) Minimum Maximum 60% 100% Risk Profile Low to Medium 0% 40% High Refer Scheme Information Document for more details. # it may be noted that under current tax laws only a sum upto `1,50,000/- along with other specified investments is entitled for tax benefit in a year under section 80 C of Income Tax Act, 1961.

25 Investment Strategy Equity 25 1 Equity portfolio is managed as a multi cap fund with large cap bias (at 75% ) and the balance in mid and small caps 2 Large cap stock selection done on the basis of top down approach while mid cap on the basis of bottom up approach 3 Large cap selection done on the basis of sectors likely to outperform the markets after a thorough analysis of the macro and focus on top companies in the respective sectors 4 Mid cap exposure done on bottom up basis by identifying companies with good growth potential, good return ratios, strong track record of corporate governance and available at reasonable valuations 5 Hugely diversified portfolio of stocks with strict concentration limits to mid cap stocks. Portfolio would managed on a conservative manner avoiding high exposure to high beta and volatile sectors and stocks

26 Investment Strategy Fixed income 26 1 Maintain Debt portfolio with focus on corporate debt with average duration of 3-4x and portfolio of high quality credits (A+ and above ) 2 Tactical allocations to G-Sec based on the overall fixed income strategy of the fund house 3 Portfolio management based on interest rate outlook, credit quality, liquidity and broad debt market environment 4 Focus on minimizing credit risk

27 Fund facts (Equity Composition) 27 Fund Snapshot Fund Size: Monthly Avg. AuM : ` Crores Last Day AuM : ` Crores No. of Unit Folios : 23,72,123 Portfolio Characteristics Wtd. Avg. MCap : 1,10,029 Active Share* : 58.88% *Active Share calculated vis-a-vis NIFTY 50 Investment Stylebox Growth Blend Value Large Large & Mid Mid & Small Portfolio Composition # ROCE Operating Cash Flow C1 : 80% C2 : 9% C3 : 11% No. of Stocks 60 R1 : 57% R2 : 31% R3 : 12% Quantitative Indicators* Beta : 0.06 SD(Annual) : 4.85% PTR (Annual) : 1.42 Sharpe Ratio : 1.79 * Based on total assets of the Scheme * The equity exposure in the scheme is rebased to 100 for calculating Top 5/Top 10 Stocks/Sectors and outside benchmark Top 5 / Top 10 Stocks 68.41% / 93.31% 22.50% / 36.63% Top 5 / Top 10 Sectors Outside Benchmark Avg. AuM Average Asset under Management, SD Standard Deviation, PTR Portfolio Turnover Ration. Wtd. Avg. Mcap Weighted Average Market Capitalisation.. # Cash flow Tiers (C)- 3 Tiers based on the number of years in which they have generated positive operating cash flows in the previous 5 years (for manufacturing cos). ROCE/implied ROE Tiers (R) - 3 Tiers based on the previous 5 year average return on capital (for manufacturing cos) & consistency in implied ROE (RoA X Leverage) for financials over 5 years. All data as of June 30, %

28 Portfolio (Equity Composition) 28 Equity Top 20 Holdings STOCK NAME SECTOR % to NAV Act. Wt % I.T.C. LTD. CONSUMER GOODS ICICI BANK LTD FINANCIAL SERVICES HDFC BANK LIMITED FINANCIAL SERVICES INFOSYS LTD. IT MARUTI SUZUKI INDIA LTD. AUTOMOBILE INDUSIND BANK FINANCIAL SERVICES ADITYA BIRLA NUVO LTD. SERVICES MAHINDRA & MAHINDRA LTD. AUTOMOBILE VEDANTA LTD METALS LARSEN & TOUBRO LTD. CONSTRUCTION FEDERAL BANK LTD. FINANCIAL SERVICES SUN PHARMACEUTICALS INDUSTRIES PHARMA IDFC LTD. FINANCIAL SERVICES RANE HOLDINGS LTD. FINANCIAL SERVICES AUROBINDO PHARMA LTD. PHARMA GRASIM INDUSTRIES LTD. CEMENT & CEMENT PRODUCTS MPHASIS LTD IT DR. REDDYS LABORATORIES LTD. PHARMA Top 10 Unique Stocks (As compared to NIFTY 50 Sub indices of Benchmark Crisil Debt Hybrid 60:40 index ) STOCK NAME SECTOR % to NAV ADITYA BIRLA NUVO LTD. SERVICES 1.14 FEDERAL BANK LTD. FINANCIAL SERVICES 0.98 IDFC LTD. FINANCIAL SERVICES 0.83 RANE HOLDINGS LTD. FINANCIAL SERVICES 0.81 GRASIM INDUSTRIES LTD. CEMENT & CEMENT PRODUCTS 0.77 MPHASIS LTD IT 0.77 NIIT LTD. IT 0.76 NIIT TECHNOLOGIES LTD. IT 0.70 POLARIS CONSULTING & SERVICES IT 0.61 VARDHMAN TEXTILES LTD. TEXTILES 0.55 NIIT LTD. IT NIIT TECHNOLOGIES LTD. IT * The equity exposure in the scheme is rebased to 100 for calculating Active weights Portfolio above shows Top 20 equity holdings under the scheme, for detailed portfolio visit Act. Wt % - Active Weight % (as compared to the Nifty 50 (sub index of Crisil Debt Hybrid 60:40 index). Data as of June 30, 2017.

29 Portfolio Snapshot (Equity) 29 Market Capitalisation (% of Equity portion) Top 10 Sectoral Breakdown (in %) As compared to NIFTY 50 Sub index to Scheme benchmark Large: 61 Mid: 25 Small: 14 FINANCIAL SERVICES Active Stock positions (as compared to Nifty 50) Overweight (Top 5) Underweight (Top 5) ADITYA BIRLA NUVO LTD. FEDERAL BANK LTD. IDFC LTD. RANE HOLDINGS LTD. GRASIM INDUSTRIES LTD. HDFC LTD. RELIANCE INDUSTRIES LTD. HDFC BANK LTD. TCS LTD. KOTAK MAHINDRA BANK LTD. IT ENERGY AUTOMOBILE CONSUMER GOODS PHARMA SERVICES CONSTRUCTION METALS MEDIA & ENTERTAINMENT % Scheme Weightage Nifty 50 Weightage * The equity exposure in the scheme is rebased to 100 for calculating Overweight/Underweight & Top 10 Sectors. Sectoral breakdown shows select sectors & Portfolio above shows Top 10 equity holdings under the scheme, for detailed portfolio visit All data as of June 30, NIFTY 50 is sub index of CRISIL Debt hybrid 60:40 index.

30 Portfolio Snapshot (Fixed Income) Credit Profile of Debt (% of debt portion) Quantitative Indicators Average Maturity : 3.99 years Modified Duration : 2.83 years YTM : 8.67 % Excluding net current assets Top 10 Holdings & G - Sec(in %) Long Term Debt (Rating) % to NAV RELIGARE FINVEST LTD. (IND AA-) 8.60 IL&FS TRANSPORTATION NETWORKS LTD. (CARE A) 8.00 AXIS BANK LTD. (CRISIL AA+) 4.23 POWER FINANCE CORPORATION LTD. (CRISIL AAA) 3.26 SREI EQUIPMENT FINANCE LTD. (CARE AA-) 2.97 INDIABULLS HOUSING FINANCE LTD. (CARE AAA) 2.19 INDIAN HOTELS COMPANY LTD. (CARE AA+) 2.12 PIRAMAL ENTERPRISES LTD. (ICRA AA) 2.12 PUNJAB NATIONAL BANK (IND AA+) 2.12 PNB HOUSING FINANCE LTD. (CARE AAA) 2.11 G Sec (SOV) 6.79% NI GSEC MAT 15/05/ GS /05/ % GOVT STOCK 24/09/ % GSEC 12/12/ % G S 15/12/ Portfolio shows select holdings. Portfolio data as on June 30, Source : Internal

31 Portfolio Snippets (Equity Composition) 31 Vedanta Ltd. Dr. Reddy s Lab Ltd. Mahindra & Mahindra Ltd. Major Portfolio Changes (over the previous quarter) Increase in Allocation (Top 3 Stocks) Increase in Allocation (Top 3 Sectors) Automobile Consumer Goods IT Stocks Entered (Top 5) ONGC Ltd. CESC Ltd. Tata Global Beverages Ltd. Apollo Tyres Ltd. Nav Bharat Ventures Ltd. GAIL (India) Ltd. Adani Ports & SEZ Sun TV Network Ltd. Decrease in Allocation (Top 3 Stocks) Textiles Financial Services Services Decrease in Allocation (Top 3 Sectors) Stocks Exited (Top 5) Balmer Lawrie Co. Ltd. Bosch Ltd. Chambal Fertilizers & Chemicals Ltd. CRISIL Ltd. Lupin Ltd. Portfolio Commentary The fund has increased its exposure to Information Technology sector in the last quarter driven by attractive valuations and firm belief in the long term attractiveness of the sector which the market price is not implying. The fund has a value orientation in its approach and seeks to invest in sectors where long term fundamentals is still intact and are available at reasonable valuations, in this the preferred sectors are Automobiles, Power utilities, upstream companies, healthcare and IT. The fund is looking to invest in global commodity sectors as there is evidence of capacity cuts in china and current Indian companies have global scale capacities on which decent operating leverage exists. The fund is underweight on financials on the back of high valuations in retail oriented banks and NBFC where visibility is strong and circumspect of the turnaround of the public sector banks. The fund has positions in corporate oriented private sector banks where valuations are in favor. All data as of June 30, 2017

32 Performance Track Record 32 Fund Performance Vs Benchmark (as of 30/06/2017) Period Fund Performance Vs Benchmark Growth of ` 10,000/- NAV (%) Crisil Debt Hybrid (60:40) (%) Crisil 10 year Gilt Index (%) NAV (`) Crisil Debt Hybrid (60:40) (`) Crisil 10 year Gilt Index (`) 1 Year ,492 11,140 11,169 3 Years ,758 12,889 13,736 5 Years ,843 16,644 15,019 Since Inception N.A. N.A. 1,09,284 N.A. N.A. Systematic Investment Plan (SIP) Returns (as of 30/06/2017) Period Investment Amount (`) Value Fund (`) Crisil Debt Hybrid (75:25) (`) Yield Fund (%) Crisil Debt Hybrid (75:25) (%) 1 Year 1,20,000 1,28,901 1,27, Years 3,60,000 4,28,089 4,12, Years 6,00,000 8,19,854 7,75, Years 8,40,000 12,60,998 11,92, Years 12,00,000 20,88,337 19,63, Since Inception* 15,10,000 30,07,694 N.A N.A. Source: MFIE., Internal The above value is calculated on the basis of the return from regular plan growth option of the scheme. Past performance may or may not be sustained in future. All returns are in CAGR - Compounded Annualized Growth Rate. N.A. Not Available. Inception of UTI Retirement Benefit Pension Fund : Dec 26, 1994 Note: The loads have not been taken into account. Systematic Investment Plan (SIP) returns are worked out assuming investment of Rs.10,000/- every month at NAV per unit of the scheme as on the first working day for the respective time periods.@:since inception return for above mentioned schemes is taken for the period December 2004 to June 2017 (Since SIP facility was introduced in November 2004). For performance of other funds managed by the same Fund Manager, please refer the Slide No. 37 & 38. The current fund manager Mr. V Srivatsa (equity portion) is managing the fund since Sep 2009 and fund manager Mr. Amandeep Chopra (Debt portion) is managing the fund since Dec 2006.

33 Why Invest in UTI Retirement Benefit Pension Fund? 33 A Government notified tax saving - cum-pension scheme Fund maintains a performance track record of more than 22 years spanning across various market cycles Tax Advantage$ Scheme offers 80 C benefit IT act,1961 LTCG* - Flat 20% with indexation STCG *- Normal tax rate applicable to assesses Pension in the form similar to annuity - Investor can opt to receive the accumulated investment in the form similar to annuity by way of SWP. Suitable for: Investors who are looking to build a nest egg for their retirement planning Investors looking to save tax under sec 80 C ** $Tax advantage is subject to prevailing tax regulations. *LTCG- Long Term Capital Gains as per new tax law as STCG Short Term Capital Gains. The rates are applicable for the financial year and as per Budget FY Investor may consult his/her financial advisor before arriving at any investment decision. Past performance or may not be sustained in the future. ** Tax benefit under 80 C of the income tax act, Contribution made will be eligible for deduction of the whole of the amount paid or deposited subject to a maximum of Rs. 150,000. Tax benefits u/s 80C under the Income Tax Act, 1961/ exemptions are subject to prevailing tax laws

34 How UTI RBP facilitates annuity payment 34 Investors after accumulation upto the age of 58/65 years and thereafter can opt to receive cash flow in the form of annuity by repurchasing the units over a period of time indicated by him/her. Eligibility Unitholders may get the regular periodical payments after they complete 58 years of age or after completion of 5 years of each investment, whichever is later, provided minimum balance of Rs.10,000/ (total investment value at NAV) under the scheme under the folio is available at the time of commencing such payment. Payment Periodicity Monthly, Quarterly, Half yearly and Yearly Min Amt of redemption Min 1000/- The redemption will continue till the outstanding amount in the folio is reduced to nil Redemption of units Redemption of units under the SWP will be made on the 1 st business day of the due month at the prevailing NAV as on that date. Redemption of units on FIFO basis for the purpose of computing capital gains, if any.

35 Illustration of Annuity Payment 35 Assumptions A Amount to be invested per month (Rs) 500 B Rate of return (%) 10 C Age up to which investment continues 52 D Monthly withdrawal required from which age(yrs) 58 E Withdrawal required up to which age (Yrs) 80 Step 1 Total amount Invested till the age of 52 2,04,000 Step 2 Value of investment when installment stopped at 52 1,726,967 Step 3 Value of investment at the age of 58 when annuity begins 3,059,428 Step 4 Monthly Withdrawal till the age of 80 29,201 This is for illustration purpose only based on certain assumptions and may not be considered as a guidance for any investment decision. Pl consult your investment advisor for investment guidance.

36 Some thoughts on Retirement Planning 36 Give a man a fish and he eats for a day. Teach a man to fish and he eats for a lifetime. Jon R. Orcutt Retirement can't be bought on credit, therefore, you need to do your retirement lifestyle planning to fit within your means - unknown Planning Makes Retirement Work"... Dr. David Demko

37 Performance details of other schemes managed by the fund manager Mr. Amandeep S. Chopra 37 Period Scheme Return (%) Fund performance as on June 30, Year 3 years 5 years Benchmark return (%) Scheme Return (%) Benchmark return (%) Scheme Return (%) Benchmark return (%) Fund manager managing the fund since UTI Gilt Advantage Fund Ltp Feb-12 UTI Dynamic Bond Fund Feb-12 UTI Bond Fund Feb-12 UTI Childrens Career Balanced Plan Dec-06 UTI C.R.T.S Dec-06 UTI Unit Linked Insurance Plan Dec-06 UTI MIS Advantage Plan Jun-04 UTI Monthly Income Scheme Sep-02 UTI Smart Woman Savings Plan Dec-06 UTI Medium Term Fund N.A. N.A. N.A. N.A. 25-Mar-15 UTI GSEC STP Feb-12 UTI Liquid Cash Plan Jul-15 UTI Money Market Fund Jul-15 Assuming that all payouts during the period have been reinvested in the units of the scheme at the immediate ex-div NAV. Past performance may or may not be sustained in future. N.A. - Not Available, *Compounded annualized Growth Rate. Past performance may or may not be sustained in the future. Returns : as on 30/06/2017. N.A. Not Available. Returns less than or equal to 1 year are absolute returns. Different plans have different expense structure. The performance details provided herein are of regular plans.

38 Performance details of other schemes managed by the fund manager Mr. V Srivatsa 38 Period Scheme Return (%) Fund performance as on June 30, Year 3 years 5 years Benchmark return (%) Scheme Return (%) Benchmark return (%) Scheme Return (%) Benchmark return (%) Fund manager managing the fund since UTI Balanced Fund Sep-09 UTI Top 100 Fund May-17 UTI C.R.T.S Sep-09 UTI Wealth Builder Fund Jun-16 UTI Monthly Income Scheme Sep-09 UTI Pharma & Healthcare Fund Mar-17 Performance details of offshore schemes managed by the fund manager UTI India Fund Unit Scheme Dec 2005 UTI India Debt Opportunities Fund Unit Scheme N.A N.A June 2007 UTI India Pharma Fund Unit Scheme Option A Dec 2005 Assuming that all payouts during the period have been reinvested in the units of the scheme at the immediate ex-div NAV. Past performance may or may not be sustained in future. N.A. - Not Available, *Compounded annualized Growth Rate. Past performance may or may not be sustained in the future. Returns : as on 30/06/2017. N.A. Not Available. Returns less than or equal to 1 year are absolute returns. Offshore Funds where the Fund manager is with an advisory arrangement has not been considered. In case of offshore Funds performance is based on INR NAVs gross of fees. a) The fund manager is managing 7 domestic schemes & 3 offshore schemes of UTI Mutual Fund. b) Different plans have different expense structure. The performance details provided herein are of regular plans.

39 Registered Office: UTI Tower, 'Gn' Block, Bandra Kurla Complex, Bandra (E), Mumbai Phone: UTI Asset Management Company Ltd. (Investment Manager for UTI Mutual Fund) invest@uti.co.in, (CIN-U65991 MH2002GOI137867). For more information, please contact the nearest UTI Financial Centre or your AMFI/NISM certified UTI Mutual Fund Independent Financial Advisor (IFA), for a copy of Statement of Additional Information, Scheme Information Document and Key Information Memorandum cum Application Form Disclaimers: The information in this document is provided for information purposes only. It does not constitute any offer, recommendation or solicitation to any person to enter into any transaction or adopt any hedging, trading or investment strategy, nor does it constitute any prediction of likely future movements in rates or prices or any representation that any such future movements will not exceed those shown in any illustration. Users of this document should seek advice regarding the appropriateness of investing in any securities, financial instruments or investment strategies referred to on this document and should understand that statements regarding future prospects may not be realized. The recipient of this material is solely responsible for any action taken based on this material, Opinions, projections and estimates are subject to change without notice. UTI AMC Ltd is not an investment adviser, and is not purporting to provide you with investment, legal or tax advice. UTI AMC Ltd or UTI Mutual Fund(acting through UTI Trustee Company Pvt. Ltd.) accepts no liability and will not be liable for any loss or damage arising directly or indirectly (including special, incidental or consequential loss or damage) from your use of this document, howsoever arising, and including any loss, damage or expense arising from, but not limited to, any effect, error, imperfection, fault, mistake or inaccuracy with this document, its contents or associated services, or due to any unavailability of the document or any part thereof or any contents or associated services. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully