The Hindu Business Line : UTI launches Opportunities Fund

UTI Opportunities Fund will predominantly invest in 4 to 5 sectors that are expected to outperform the broader market in the short- to medium-term UTI Mutual also plans to merge Primary Equity Fund, Unit Scheme 92, Master Equity Plan 1998, Master Equity Plan 1999 and Grandmaster Unit Scheme into UTI Opportunities Fund.

The minimum investment amount is Rs 5,000. The Sensex will be the benchmark. The fund offers Dividend, Growth and Dividend Re-investment options.

When new funds are launched, fund houses would have to label them as `new fund offer' (NFO). The Association of Mutual Funds of India has decided this. Fund houses have been using the phrase `Initial public offering' (IPO) so far. The AMFI move is to distinguish fund offers from maiden equity offers made by companies.

Mr M. Damodaran, Chairman of the Securities and Exchange Board of India has criticized the mutual fund industry for its investor unfriendly practices such as offering rebates and incentives to distributors to sell funds and resorting to a frequent churning of portfolios.

SEBI has stipulated that the average net assets of a fund has to be calculated on a daily basis; it has also stipulated that any breach of the 25 per cent limit for an investor has to determined on a daily basis.

At the end of the quarter, average daily holding of an investor has to be computed to check whether the limits prescribed have been violated. If there is a breach, the investor will have to redeem his holdings within 15 days to stay within the prescribed limit.

Standard Chartered Mutual Fund has launched its first equity fund — Standard Chartered Classic. The initial offer period would be between June 27 and July 14. The fund will invest between 65 and 100 per cent of assets in equities. . The minimum application money is Rs 5, 000. The fund offers both growth and dividend options. The fund will charge an entry load of 2.25 per cent during the new offerings and ongoing basis for investment below Rs 5 crore. There will be no exit load.

JM Mutual Fund has launched JM Emerging Leadership Fund. The fund will invest in stocks of companies that operate in emerging sectors of the economy and exhibit potential to become leaders.

The new fund offer will open for investment in the initial offering period between June 16 and July 4. The objective of the fund will be to identify and invest in companies that could attain a status similar to that of Infosys, Ranbaxy and Tata Steel now.

Benchmark Mutual Fund has launched a new fund named Split Capital Fund — Balanced. This is a close-end fund with tenure of three years. It would invest in debt and equity. The fund offers two plans: Class A, which is preferred units, and Class B, which are capital units.

For Class A, the principal investment is expected to be secure. Class B units will account for 20 per cent of the portfolio. The equity component will mimic the Nifty. The initial offer period would be between June 22 and July 14.

Sahara Mutual Fun has launched Sahara Wealth Plus Fund. The fund will invest in stocks that would be wealth builders over the long term. The initial offering period is between July 04 and July 22.

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