Is it advisable to transfer 150 units of UTI mid cap fund growth regular to Uti NFO OFFER to UTI S&P BSE index Housing fund?

Ans: It's essential to assess whether such a transfer aligns with your investment goals, risk tolerance, and overall portfolio strategy.

Transferring units from a mid-cap fund to a thematic fund focused on the housing index could significantly alter the risk profile of your portfolio. Thematic funds tend to be riskier due to their concentrated exposure to specific sectors or themes.

Before making this decision, consider the following:

Investment Goals: Determine if exposure to the housing sector aligns with your investment objectives and if you're comfortable with the associated risks.

Risk Tolerance: Assess whether you're prepared for the potentially higher volatility and fluctuations in returns that come with thematic investing.

Diversification: Evaluate how this transfer would impact the diversification of your portfolio. Ensure that your overall portfolio remains well-diversified across different asset classes and sectors.

Performance Outlook: Research the housing sector's performance outlook and consider whether you believe it will outperform the mid-cap segment in the future.

Tax Implications: Consider any tax implications of selling units from the mid-cap fund, such as capital gains taxes.

Professional Advice: If unsure, seek advice from a financial advisor who can provide personalized guidance based on your financial situation and objectives.

Ultimately, the decision should be based on a comprehensive analysis of your investment strategy and the specific characteristics of each fund involved.

Ans: I will stick to UTI mid cap fund.

Ans: I propose that you estimate the long term(assumed) capital gain tax liability that may arise after sale of this flat considering indexation or without indexation as is optimal for you. Next consider the future redevelopment potential in the tier-1 city particularly in the area where you have the flat. Another point to be borne in mind is if your daughters need to move to tier-1 city in future for better coaching, education, prospects then this aspect needs to be considered. If you still want to sell the flat then time it in such a way when you want to buy new residential property in tier2 city because you can utilise all your gains here without paying any capital gain tax(Section 54 of Income tax act allows exemption subject to conditions) and/or buying section 54 EC Capital Gain bonds to save LTCG payment(50L per FY limit & 6 months within sale of property subject to eligibility).

Unless you have strong knowledge of markets or an investment advisor to assist you, I would recommend you to redeem your(family) stock holdings(subject to high volatility and needs regular monitoring) of 85L+15L and invest it in a staggered manner into equity savings and value focussed balanced advantage fund for horizon of 4-5 years.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing

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