The Hindu Business Line : UTI targets Rs 1,000 cr thru Leadership Equity Fund

UTI Mutual Fund is looking at raising at least Rs 1,000 crore through the `Leadership Equity Fund,' a new scheme that seeks to invest in equity and equity-related instruments of industry leaders, its Chief Marketing Officer, Mr K. Madhava Kumar, said.

The asset management company is bullish about the Indian economy and capital markets, Mr Kumar said. While stating that the new equity scheme primarily seeks to invest in stocks irrespective of capital market conditions, he said UTI MF finds the Indian capital markets highly attractive even at the current Sensex level of around 9,500.

"Most of the foreign players are considering it the right time to invest in India. They have already invested over Rs 45,000 crore in the Indian market last year. "With the country's attractive GDP growth, foreign exchange reserves, focus on infrastructure, strong rupee position and highly favourable demographics with a growing young, educated and professionally competent population, we hope the capital markets will continue to maintain the tempo in the years to come as well," Mr Madhava Kumar said.

Addressing newspersons here on Tuesday, he said UTI MF would identify around 30-35 sectors with 4-5 leaders in each sector for investing up to 65 per cent of the proceeds of the new equity fund. The balance 35 per cent of funds would be invested in the potential leaders.

"In the rising markets, leaders will perform better than the rest. Similarly, in the falling market conditions, the leaders fall far less than others," he said.