New Delhi: UTI Mutual Fund (MF) on Monday announced the launch of a close-ended equity scheme 'UTI-Wealth Builder Fund' (UTI-WBF) from September 7.
"Apart from being a five-year close-ended equity scheme, UTI-WBF will also utilise derivatives to hedge the portfolio and the extent to which the portfolio will be hedged will be linked to index levels," UTI Asset Management Company (AMC) CMD U K Sinha said.
The objective of the scheme is to achieve long-term capital appreciation by investing predominantly in a diversified portfolio of equity and equity-related instruments.
The scheme, with a maturity period of five years with automatic conversion into an open-ended scheme upon maturity of the scheme, will invest in equity and equity-related instruments to the extent of 65 –100 per cent and 0-35 per cent in debt and money market instruments.
UTI AMC Chief Marketing Officer Jaideep Bhattacharya said UTI MF is expanding its product suite to fulfill the need of long-term thinking investors.
The offer, open to resident individuals, institutions as well as NRIs and FIIs, will close on October 11, 2006.
Units, at face value of Rs 10 per unit, will be sold only during the new fund offer period. Minimum initial investment is Rs 5,000 and in multiples of Re 1 thereafter without any upper limit.
The scheme offers two options, which are growth option and Dividend-Payout option.
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