Mumbai: UTI Mutual Fund announced the launch of a new equity oriented scheme "UTI-Leadership Equity Fund". The New Fund Offer opens on 9 January 2006, and closes on 30 January 2006. The scheme will re-open for continuous purchase and redemption from 28 February 2006 onwards.
UTI-Leadership Equity Fund is an open-ended equity oriented scheme, which seeks to generate capital appreciation and / or to distribute dividend by investing the funds of the scheme in stocks that are "Leaders" in their respective industries / sectors / sub-sector.
The scheme will invest in equity and equity related instruments of "leaders" to the extent of 65 -100 per cent and "potential leaders" to the extent of 0-35 per cent. The scheme may also invest in debt and money market instruments to the extent of 0-10 per cent.
"UTI Mutual Fund begins the New Year with the launch of a new wealth creation opportunity for investors," said U K Sinha, managing director and CEO, UTI AMC."During the year UTI Mutual Fund will be adding several new schemes to its product basket to satisfy the varied investment needs of investors. The uniqueness of UTI-Leadership Equity Fund is to invest 'both' in the 'existing leaders' and 'potential leaders' of the economy."
According to A K Sridhar, chief investment officer, UTI AMC, "'Leaders' tend to be companies with higher market shares, better operating efficiencies, better access to capital and significant / sustainable competitive advantages. The scheme will invest at least 65 per cent of its corpus in the top five leading companies of an industry/sector/sub-sector in terms of sales turnover / market share/ market capitalisation."
The scheme will also invest up to 35 per cent in companies that are potential leaders in order to profit from the probable upside potential in the stock of these companies.
Sanjay Dongre, fund manager of UTI-Leadership Equity Fund notes that studies show that leaders give good returns in an economic upswing and are also able to withstand economic downswings better than other companies.
"Today the Indian leaders are competitive in the global context and have a potential to emerge as tomorrow's global multinational companies," he adds. "UTI- Leadership Equity Fund will provide an opportunity to investors to share the prosperity of
UTI Mutual Fund is a SEBI-registered mutual fund whose sponsors include State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation of India.