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UTI MF plans to raise Rs 6,000 crore

"We are targeting 30% growth in our total AUM to take it to about Rs 26,000 crore by the end of this fiscal," DSR Murthy said.

business Updated: Aug 27, 2005 16:04 IST

Stating that banks would be the major distribution channels for mutual fund products five years later, the country's largest mutual fund, UTI Asset Management Company Pvt Ltd, on Saturday said it was planning to raise about Rs 6,000 crore during this year.

"We are targeting 30 per cent growth in our total assets under management (AUM) to take it to about Rs 26,000 crore by the end of this fiscal," Executive Director, UTI Asset Management, DSR Murthy told reporters at the inauguration of UTI financial centre, its 62nd, in Mumbai.

In the first five months of this fiscal, UTI has achieved over 50 per cent of its targeted amount. The AUM has risen to Rs 24,400 crore a couple days back from Rs 20,743 crore as on March 31.

Expressing happiness over UTI's distribution tie-ups with post offices and public sector banks to increase its reach to retail investors, Murthy said such alliances also helped banks and post offices increase their bottomlines.

"It straightaway adds to their bottomlines," he said adding, "five years down the line, banks will be the major channels for distributing mutual fund products."

He said UTI was giving major thrust on attracting individual investors and the gap in business size between the UTI and the second largest fund house was increasing. "We have about 66 lakh individual investors in our schemes. The next highest by a mutual fund company is about 10 lakh," he added.

He said Indian stock markets had turned out to be lucrative and safe for investors in the Middle East and US, who were earlier investing in UK and US markets.

First Published: Aug 27, 2005 16:04 IST