New Delhi: UTI Mutual Fund targets to raise about Rs 500 crore from its new close-ended equity fund product that will open for subscription on August 13.
"We are targeting Rs 500 crore from this fund," Suraj Kaeley, group president-sales and marketing at UTI Mutual Fund, said in Delhi.
The close-ended 'UTI Focussed Equity Fund-Series 1 (1100 days)' is the new fund offer by the company which will close for subscription on August 17, 2014.
It is a 1,100-day (three years) equity-oriented scheme that will invest in a compact portfolio of 30 securities, head of equity Anoop Bhaskar said while addressing reporters.
"The primary objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related securities of listed companies...The scheme will normally hold up to 30 stocks in the portfolio," the company said.
However, the fund will not invest in securitised debt. The product on offer is open to resident individuals, institutions, non-resident Indians and foreign institutional investors (FIIs).
The minimum amount of investment is fixed at Rs 5,000 and in multiples of Re 1 thereafter. The scheme will be listed on National Stock Exchange (NSE).
"Going forward we believe there are various factors that are positive. In most of the macro-economic factors there is far greater stability. There is far greater certainty, so we have come up with the fund during this time," Mr Bhaskar said.
He also said due to favourable conditions, there is a greater possibility that the corporates are expected to see double digit earnings growth in coming 2-3 years.
UTI Mutual Fund is a fund sponsored by State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation (LIC).
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