The Hindu Business Line : `We are trying to cater to all sections'

UTI MUTUAL Fund, even in its present reformed avatar, is not the fund of choice for the typical white-collared worker, owns up Mr Ashutosh Bishnoi, Chief Marketing Officer, adding that the fund house will now try harder to appeal to the smart urbanite.

He also shares with Business Line some of the other ideas mooted by the MF, including ones that relate to Unit Linked Insurance Plan (ULIP) and Grandmaster. Excerpts.

UTI MF is not quite a hit with the well-heeled salaried class. Do you agree?

We need to attract all segments of the market in order to sustain our leadership position. There are people, despite the big salaries they draw, who have not tested us lately. We are now trying to cater to them as well.

The MF, let me add, has recently tried to bond with management institutions by inviting papers on corporate performance. Over 60 institutions have responded. This may be the first of other similar initiatives, ones that will take us near the astute investor of the future.

We have also tried to reach out to younger people by approaching various schools. The plan is to establish the brand in a more effective manner.

ULIP, one understands, will introduce changes. What are these?

Yes, we are planning to increase the amount (technically, the `target amount') from Rs 2 lakh to Rs 5 lakh.

ULIP happens to be a large-sized balanced fund, in existence since the early 1970s. It has assets of about Rs 4,000 crore. As you may know already, the scheme allows benefits under Section 88 of the Income Tax Act.

In fact, it seeks to encourage the practice of regular savings by individual taxpayers who wish to obtain the rebate. We are aiming to better position it. But at the same time it will have to contend with unit linked plans pushed by insurance companies.

Some of the private-sector players in insurance, including the better-known names, employ very aggressive marketing strategies when it comes to their unitised plans. We are aware of this.

Any new product launches?

Nothing specific at the moment. The former IL&FS MF schemes have been renamed and are now firmly in our fold.

We may consider bringing a couple of smaller equity schemes under the Grandmaster umbrella. We cannot divulge particulars of this plan or the names of these smaller schemes at this juncture. Generally speaking, new products will be taken up whenever we think there is room to do more.

Incidentally, we have recently renamed US 95 as UTI Balanced Fund. This will help in comparing it more effectively with other balanced schemes.

On another front, we are also aware that some of the other fund houses have rolled out friendly products and the market has responded fairly well to these. The point to be noted here is that there is an appetite for good and sensible schemes... intelligent investors will catch them in the early stages and include them in their portfolios.

What's the latest on the two index products you worked out with SSgA's support?

The offer documents have been already filed with SEBI. The proposals are pending with the regulators and we are waiting for a view to emerge. If the response is favourable, both should turn out to be pioneering ideas.

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`We are trying to cater to all sections'