Chennai: UTI Mutual Fund has launched a new scheme called UTI-India Lifestyle Fund. The three-year close-ended equity oriented fund will invest the corpus in equity and equity related instruments of corporates that are expected to benefit from changing Indian demographics, lifestyle and rising consumption pattern.

The new fund opened on 2 July, 2007 and closes on 25 July, 2007. The fund does not have either an entry or exit load. In case an investor exits during the first three years an early exit charge equivalent to the unamortised new fund expenses will be recovered.

According to R Raja, senior vice president, UTI Asset Management Company, "Indian consumers are showing a marked preference for new products and services that deliver higher levels of quality than conventional items. This has changed the scale of demand for household goods and services such as automobiles, home goods, telecom, consumer finance, leisure, entertainment, media and others. The UTI India Lifestyle Fund endeavours to invest in companies, which benefit directly from changing lifestyles of people of India."

The new scheme is open to resident individuals, institutions as well as to Non Resident Indians and foreign institutional investors. The face value of units is Rs10 and the minimum investment is Rs5,000 and in multiples of Re1 thereafter. After three years the scheme will be converted into an open ended one.

The scheme will offer redemption / switch out of units on an ongoing basis at half yearly intervals at NAV based prices. The redemption / switch out will be available only during the Specified Redemption Period i.e. five business days on a half yearly basis after the closure of the NFO.