UTI announces a new scheme
The face value of UTI-Contra Fund units is Rs 10 and the minimum initial investment is Rs 5,000.india Updated: Mar 06, 2006 19:07 IST
UTI Mutual Fund on Monday announced the launch of a new scheme, UTI-Contra Fund, which aims at providing long-term capital appreciation/dividend distribution through investments in listed equities and equity-related instruments.
Unveiling the scheme, UTI AMC (Asset Management Company) Chief Marketing Officer K Madhavkumar said it was an open-ended equity oriented scheme.
"Considering the present growth path of the Indian Equity market, we thought a fund based on a differentiated strategy will be best suitable for the investor's aspirations."
The Fund works with an approach to benefit from non-rational behaviour of the investor/equity markets and focuses on out-of-favour stocks, Regional Sales Head-South UTI-AMC R Vijaykumar told reporters here.
The UTI-Contra Fund would not only be "contrarian to the majority but also try to identify stocks with intrinsic potential and a good management bandwidth," he said.
UTI AMC Fund Manager Swati Kulkarni said, "investing in a contrarian manner allows investors to own a portfolio at a bargained price and gain handsomely at the time of value realisation."
The scheme is open to resident individuals, institutions as well as NRIs and FIIs. The face value of the units is Rs 10 and the minimum initial investment is Rs 5,000. Subsequent minimum investment under a folio is Rs 1,000 and in multiples of Rs one thereafter with no upper limit.
The scheme, which closes on March 22, will reopen for continuous purchase and redem.