AMC Speak

Investing for an impact

Rajnish Kumar, Senior VP Products, UTI MF

11th July 2016

In a nutshell

Rajnish Kumar takes us through UTI Canserve - a noble investment idea where you can share/give away the returns from your investment to aid needy cancer patients. Thousands of cancer patients are unable to access treatment due to financial constraints. You can help them by promoting UTI Canserve among your clients. This time, don't think of returns - think of how you can help contribute towards a noble cause.

"Rivers flow for benefit of others, Cows give milk for benefit of others, Trees bear fruits for benefit of others, similarly this body is also meant for benefit of others" Taking pleasure in others' pleasure-Pure altruism

Of late, our nation has been lending a strong hand to philanthropy work. Individuals, Groups, High Net Worth donors, Ultra High Net Worth donors, institutions & foundations are making it happen in a big way for a cause they believe is worth taking up. There are handfuls of statistics to establish this growing culture of philanthropy. According to Bain - Indian Philanthropy report 2015, country has added 100 million donors since 2009 and has currently moved to 69th position in World Giving Index up from 134th position in 2010. Notably, a large chunk is much more willing to join for a reason. What is remarkable is that the philanthropic donations in our country are ahead of donations compared to other developing countries and more than a third of current donors expect their donations to increase in the next five years. As the nation implements the corporate social responsibility (CSR) regulations under the new Companies Act, there will be a positive incremental growth in the philanthropy space, bringing in more corporate donors and bringing about greater accountability and transparency.

One of the key requisite especially for retail or individual donors is that they look out for a credible window that facilitates transparent channelization of donations / resources to the end objective/ user. And, here we introduce UTI Canserve which brings two set of stakeholders i.e. donors and donee to a common platform. The simple philosophy of UTI Canserve is to facilitate one do charity while doing investment (select schemes) in a tax efficient manner. Launched in 2015, the initiative is gaining momentum as its getting acknowledged by existing investors, prospective investors and distribution partners from the market. UTI has entered into alliance agreement with St.Jude India Child Care Centre (SJICCC) - a non-profit organization to run this initiative. Launched in 2006, SJICCC provides free accommodation and other facilities to needy out-station families with cancer affected children. The families travel from rural and semi-urban areas to receive low cost world class treatment in the metros. St Jude bridges the gap between zero to low cost treatment provided by the hospitals and the holistic support and care needed by the families in these trying times of their lives. The facilities provided include free, safe, hygienic accommodation, weekly ration for nutritious meals, transport to and from the hospital, and counseling, educational and recreational activities to the families staying at the St Jude centres. (www.stjudechild.org).

Investors through UTI Canserve can do charity while investing in any of the listed schemes ( i.e. UTI Mastershare Unit Scheme, UTI Balanced Fund and UTI Spread Scheme) in the flowing manner ;

1. UTI CanServe facility under Dividend Payout Option - Under the option investor can contribute to a medical cause by sharing / transferring the dividend arising out of his / her investment to SJICCC .The investor can opt to donate either i) 50% of the dividend declared or ii) 100% of the dividend declared, in future subject to a minimum of Rs.1000/-. Investors may claim tax exemption under sec 80 G of the Income Tax Act, 1961 to this effect.

2. UTI CanServe facility under Growth option - This option facilitates Investor who is desirous to contribute a specified sum periodically (twice in a year) to SJICCC. Investor can contribute by indicating a specified amount (Minimum Rs. 1000/- at half-yearly intervals). The redemption to the extent of corresponding units will take place on the 1st business day of April and October at the NAV applicable on that day to make the donation payment. Here also, investors may claim tax exemption under sec 80 G of the Income Tax Act, 1961 to this effect.

3. The contributions / donation mentioned above under A) and B) will go to St. Jude India Child Care Centres for a social cause as mentioned above. St. Jude India Child Care Centres will issue certificate towards donations to avail tax exemption under section 80 G of the IT Act, 1961. Existing investors may provide a fresh mandate for availing CanServe Facility by mentioning their existing folio number in the request form. Please note that investment will remain in investor's name forever and only the fruits will be shared with the needy ones. The support received so far from existing investors and as well as new investors has been overwhelming and has helped many children sustain and find a new hope against all odds. Those willing to make a difference to the lives of needy children and bring smiles on their face, here is an opportunity - UTI Canserve - a trigger to ignite a spark of benevolence, inside waiting in us to be fanned into a roaring flame of goodness.

The article is written by Rajnish Kumar - Senior Vice President (Products). Investors may consult their Financial Advisor for taking any investment decision.

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