For more details, follow us on Twitter @utimutualfund; Email queries or suggestions: info@beswatantra.com Please mention ‘Swatantra in TT’ in subject line. For more such fi nancial advice, head to our website: http://www.utiswatantra.com

In the next edition: Understanding your fi nancial behavior is as important as understanding your rights and responsibilities as an investor. In the next edition, we will look at how different zodiac signs exhibit different fi nancial traits.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

To ensure that you are making an informed decision and there is complete transparency in the way your money is being managed, the market regulator, Securities and Exchange Board of India (SEBI), has put in place certain rights for you as a Mutual Fund investor.Let’s take a closer look at your rights and duties as an investor:

Right to assess scheme related documentsScheme Information DocumentThis document provides key information about the nature of the scheme, asset allocation strategy, fees and expenses, and the details about the Fund management team.Statement of Additional InformationThis document contains necessary information about the Asset Management Company (AMC) such as details of key personnel, sponsor and trustees, and details of Tax, Fund management process, auditors and legal team. Key Information MemorandumIt contains scheme information highlights such as its key features, performance record, and terms and conditions of investing.Fund Fact SheetThis document contains all the information regarding the portfolio composition of the scheme.

Right to receive and know about dividends and redemptionsIf any dividend is declared on your MF scheme, you have the right to receive the proceeds within 30 days from the declaration, failing which you are entitled to an interest of 15% per annum for the period of delay.

Your responsibility● Provide correct contact details to receive updates from

the Fund ● Provide your bank account details to the Fund for timely

receipt of dividend

*This content was created exclusively for UTI Swatantra. Visit http://www.utiswatantra.com for more information

HOW TO READ A MUTUAL FUND STATEMENT AND RISK-O-METER

Keeping a tab on your MF account statement and Risk-o-meter is of utmost importance. Here’s how to go about it.What does an MF statement contain:

TRANSACTION DESCRIPTION

This section reveals the nature of the transaction you have with the Fund

House; for example, a Systematic Investment

Plan (SIP). Other transactions such as

dividend re-invested or paid out is also recorded

in this segment.Keep track of the dividend declaration pattern (if you

have opted for the dividend option) of the scheme.

*This content was created exclusively for UTI Swatantra. Visit http://www.utiswatantra.com for more information

HOW TO READ THE RISK-O-METERAll scheme related documents have a pictorial representation of the level of risk of the scheme you are choosing. This is called the Risk-o-meter. It contains fi ve levels of risk namely, low, moderately low, moderate, moderately high, and high. The pointer tells you at a glance the level of risk you are opting for by investing in the scheme. This helps you further in making an informed choice.

YOUR PERSONAL AND BANK DETAILS

You will fi nd your name, address, email id, contact number and bank details

in this section. Check if these details

are accurate to receive updates from the Fund

FUND NAME AND OPTION The name of the scheme you have invested in along with the details of dividend or growth option that you have opted for features in this segment.If you fi nd any discrepancies in the name or the option you have chosen in the account statement bring it to the immediate notice of the Fund House/distributor for corrective action.

FOLIO NUMBER If you have investments across different Fund Houses, you will have different folio numbers for

each Fund House.Use a single folio number to track all

your investments easily (Debt, Equity, ELSS) with a particular Fund House.

CURRENT COST AND VALUECurrent cost is the amount you invested in the scheme. The current value is the market value of your investment when the statement was generated.Use this information to fi nd out the performance of your investment.

ADVISOR DETAILS Your advisor/distributor, his name, PAN number and Employee Unique Identifi cation or EUIN number will be mentioned.Check the EUIN number of your advisor to confi rm certifi cation.

ELSS) with a particular Fund House.

Mutual FundAccount statementFolio No.:

Name:Address:email ID:Phone no:

DOB:Mode of Holding:

Bank account no:Bank Name:Bank address:MICR No:

Financial Advisor:Sub ARN code:

Pay mode:

IFS Code:

Sub Code:Holder Pan KYC status EUIN:

Catagory: Status:

MF plan

Current value XYXYXY.XY

Right to question distributor fees and commissionYou have the right to know about the fees and commission structure of your Mutual Fund Scheme.

Your responsibility● Ask the distributor

about the suitability of the scheme he is recommending to your portfolio

● Understand the fee structure

It is never too late to exercise your right to invest; start today!

SIP IS THE RIGHT PATH TO ACHIEVE YOUR FINANCIAL GOALS

Steps to download and scan a QR code: 1) Download QR code app on your phone. 2) Run app and scan the QR code. 3) Your smartphone reads the code and navigates to the destination.

Scan this QR code to calculate the amount you need to invest to achieve all the milestones you have set for yourself.

Have questions on Mutual Funds? Scan this QR code to send them to us.

Scan this QR code to register for an event happening in your city.

ARE YOU A MUTUAL FUND INVESTOR? KNOW YOUR RIGHTS AND RESPONSIBILITIES

Your responsibility● Read all the scheme information documents carefully

● Check if the investment

objective and risk profi le of the Fund is aligned with your goals

● Be aware of the expenses that include the Fund management fee, Taxes and other operational costs

WHAT NEXT?

Know the nitty-gritty of reading a Mutual Fund

statement.

Are these ready with you?● Documents showing investment

in Equity Linked Savings Scheme (ELSS)

● Documents showing investments in other options covered under Section 80C

● Life and health insurance premium receipts

● Rent receipts for claiming House Rent Allowance (HRA)

Have you shared the following information with your employer for them to deduct your Income Tax accurately?● Interest from saving bank account● Capital Gains on Shares or

Mutual Fund● Interest from Fixed Deposit

and Recurring Deposit Account

● Rental income and income from other sources

TAX SECTIONYour investments have to work for you. Around this time, you will receive an email from

your company to submit proof of investments made during the year for Tax saving under Section 80 of the Income Tax Act. If you do not submit these on time, the company will

deduct Tax at source and you will receive less salary in the three months to March.

Did you know: You can save up to a

maximum of `45,000 in Tax every year by investing

`1,50,000 in ELSS.

If you are a fi rst-time investor in mutual funds, you need to comply with the Know Your Customer (KYC) norms. This is a one-time process that every mutual fund investor needs to do, to be able to invest in mutual funds. KYC norms are mandated by the Prevention of Money Laundering Act (PMLA), to track the legality of funds used for investments. Money laundering refers to converting money that is earned through illegal ways into legal money by passing it through various banking channels. This makes it diffi cult for authorities to track the ‘dirty money’ to its illegal origins. There are three types of KYC done; Physical KYC, e-KYC: Adhaar based OTP and e-KYC: Adhaar based biometric.

Here’s what the expert saidPralay GhoshIFA, UTI MUTUAL FUND

EXPERT SPEAKA reader asked us:

Complying with the KYC norms is mandatory for a Mutual Fund

investor. What is the procedure?

An Asset Management Company is a fi nancial beehive that collects the honey of mutual fund investments made by its garden of clients. The busy bees of the company are the Asset Managers and the Fund Managers who roam over the Vista of the vast market, to identify the best schemes for the investors so that their honey of money enjoys a safe and healthy growth. The asset managers do a lot of scientifi c research into shares and stocks, then the fund managers put the investors’ money into profi table and safe schemes for a harvest of rich returns. An Asset Management Company manages people’s asset with round the clock toil and vigil.

GURUSPEAK

Bhagwati Prasad BajoriaIFA

What is an Asset Management Company (AMC)?

Need help for planning your fi nances in 2019? Tune into UTI Swatantra Facebook Live on 20th December, 2018 from 5:00 pm onwards to watch our show on 'Secure your New Year fi nancially through Mutual Funds'.

Swatantra Kumar Explains:

Self-attribution biasSelf-attribution is a

psychological habit of taking credit for successful investment

outcomes and fi nding a scapegoat such as bad luck,

social or economic condition in case of any negative outcome.

What you should do to avoid self-attribution while investing

● Exercise discipline and follow a well thought out investment strategy● Adhere to your fi nancial goals with patience

● Review your portfolio periodically to see if your investment growth is aligned to your goals

How self-attribution bias can harm you:

● You are unable to see your investment mistakes

● It can cause an illusion that your portfolio is performing well, when in reality it may be performing below par

● You become overconfi dent and try to time the market with disastrous outcomes

self-attribution while investing

● Exercise discipline and follow a well thought out investment strategy

with patience● Review your portfolio periodically

to see if your investment growth is aligned to your goals

*This content was created exclusively for UTI Swatantra. Visit http://www.utiswatantra.com for more information