UTI MF scheme likely to mop up over Rs 300 crore

19 Nov 2008, 2100 hrs IST, PTI

At a time when mutual funds are coming under redemption pressure, UTI MF is likely to mop more than Rs 300 crore under UTI Wealth Builder Fund—Series II, which closed for subscription under new fund offer.

"UTI Wealth Builder Fund--Series II was sold three times more than our expectations. In the first week itself, we collected Rs 50 crore. We expect more than Rs 300 crore investment," UTI Asset Management Chief Marketing officer Joydeep Bhattacharya said.

The scheme, a diversified open ended scheme, is expected to be subscribed by more than one lakh investors, he said.

"It has been an extremely successful NFO. Indian investors bullish in long term," Bhattacharya said. The scheme will allocate the fund across equity, exchanged traded gold funds and debt.

"In our view, the stock market is closer to the bottom than the top. For people, investing now have greater chance for good returns as the valuations are attractive. Everyone is bullish on Indian economy in the long term," he said.

Today India has a highest saving rate, so if the funds are not launched, it will go to other forms of investment, he added. On investing the part of fund to exchange traded gold funds, Bhattacharya said gold is the best hedge against inflation.

In the last year, gold has given 16 per cent return, while the stock market has been down by 55 per cent, he added.

via:E.T