ITI Ultra Short Term Fund Inactive: NAV ₹1,003.52
By Business Desk
ITI Ultra Short Term Fund is now inactive, accepting no new investments. Learn about its NAV of ₹1,003.52 and implications for existing debt fund investors.
THE PIP (TL;DR)
An inactive fund changes how you manage existing investments and impacts future planning.
- The ITI Ultra Short Term Fund Direct-IDCW Monthly, launched on May 5, 2021, is now an inactive scheme, meaning it accepts no new investments. Its Net Asset Value (NAV) stood at ₹1,003.52 as of July 10, 2023.
- This fund, which aimed for regular income via short-term debt and money market instruments, now operates only for existing investors.
- For those holding units, understanding its current status, expense ratio of 0.1%, and specific tax rules for redemptions is crucial for managing their personal finances.
The ITI Ultra Short Term Fund Direct-IDCW Monthly, launched by ITI Mutual Fund on May 5, 2021, has transitioned to an inactive status. This means the scheme no longer accepts fresh investments. As of July 10, 2023, its Net Asset Value (NAV) was recorded at ₹1,003.52, with a fund size of ₹132.75 crore as of May 31, 2023, as per The Economic Times data.
Initially designed to offer regular income and capital appreciation, the fund focused on short-term debt and money market instruments with a Macaulay duration of 3-6 months. Its benchmark was the CRISIL Ultra Short Duration Debt A-I Index. For existing unit holders, the fund continues to operate with a 0.1% expense ratio for its Direct plan and carries a 0% exit load.
For investors currently holding units in the ITI Ultra Short Term Fund, its inactive status means you cannot add to your existing Systematic Investment Plans (SIPs) or make new lump-sum contributions. This requires a review of your overall debt allocation, especially if this fund was a significant part of your short-term savings strategy. Understanding these changes helps align your portfolio with your current financial goals.
It is also important for investors to be aware of the tax implications linked to this fund. Gains from redemptions within three years are taxed as per individual slab rates, while those held longer than three years receive indexation benefits with a 20% tax rate. Additionally, dividend income exceeding ₹5,000 annually is subject to Tax Deducted at Source (TDS), affecting your overall returns.
ONE THING TO CONSIDER TODAY
Now is a good time to check the status of all mutual funds in your portfolio, especially debt funds, to ensure they are still active and align with your investment horizon.