The Hindu Business Line : UTI Mutual launches Lifestyle Fund

New Delhi, July 2 UTI Mutual Fund on Monday launched a three-year close-ended, equity-oriented scheme called UTI-India Lifestyle Fund. The new fund offer (NFO) opened on July 2 and closes on July 25. The purchase of units will be available only during the NFO period.

Addressing a press conference here, Mr Harsha Upadhyaya, Vice-President (Fund Manager), UTI AMC, said, “The fund is a three-year close-ended equity-oriented scheme with an investment objective to provide long-term capital appreciation or income distribution from a diversified portfolio of equity and equity- related instruments.”

Elaborating further, Mr Upadhyaya said that the plan is open to resident individuals, institutions as well as non-resident Indians and foreign institutional investors. On maturity, the scheme will automatically be converted into an open-ended scheme.

“The minimum investment is Rs 5,000 and in multiples of Re 1 thereafter without any upper limit. Units can only be purchased during the NFO at the face value of Rs 10 per unit,” he added. The scheme offers redemption/switch-out of units on an ongoing basis at half yearly intervals at net asset value based prices. The redemption/switch-out will be available only during the specified redemption period – five business days on a half-yearly basis after the closure of NFO.

“Since it is a close-ended scheme it is not permitted to charge entry load. An early exit charge equivalent to the unamortised NFO expenses will be recovered from the investor in case of redemption before the expiry of three years from the date of allotment,” Mr Upadhyaya said.

UTI Mutual expects five lakh retail investors and is targeting Rs 2,000 crore from the fund. “The funds would be invested in around 50-60 stocks in 13 sectors. The stocks would be mainly from automobile, home goods, retail, telecom, consumer finance, foods, housing, personal care, health care, fashion accessories, leisure, entertainment and tourism sectors,” Mr Upadhyaya said.

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