The Hindu Business Line : UTI Mutual may launch Wealth Builder Fund on Oct 21

UTI Mutual Fund is likely to launch its Wealth Builder Fund-Series II on October 21. This is billed as the first ever scheme in the mutual funds industry that would allow investors to get exposure in equities as well as gold under the banner of the same fund.

Wealth Builder Fund Series -II is an open ended equity oriented scheme that would look to achieve long term capital appreciation by investing predominantly in diversified portfolio of equity instruments along with gold and gold related instruments.

“Gold is generally considered as a safe haven in time of economic upheavals and volatile equity markets. This could be the right time to bring such a product in the context of the current volatility and turbulence in the global financial markets”, industry sources said.

According to the asset allocation planned and filed for regulatory approval, 65-100 per cent could go towards equity, upto 25 per cent could go towards gold and gold related instruments and also 0-25 % could go towards debt and money market instruments.

The BSE-100 would be the benchmark index for the equity part of the portfolio. The prices of gold as per SEBI regulations for gold ETFs would be the benchmark for investments in gold and gold related instruments (including domestic Gold exchange traded funds).

While UTI’s proposed Wealth Builder Fund Series-II would be an open ended fund, the UTI Wealth Builder Series –I was a closed ended fund with investments only in equities.

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