UTI MF, Corpn Bank in vending pact

UTI Mutual Fund (UTIMF), which manages assets around Rs 20,000 crore, has tied up with Corpration Bank to distribute mutual fund schemes through its branches across the country.

Moreover, it plans to launch shortly the first auto sector fund and portfolio management scheme (PMS).

Chairman and managing director M Damodaran said, "The tieup with banks such as Corporation Bank is aimed to use their large branch network to reach informed customers."

Meanwhile, Corporation Bank chairman and managing director Cherian Varghese said, "The bank will initially offer UTIMF schemes at 70 branches with help of trained officers. The state-owned bank has already trained 20 officers and plans to have one Association of Mutual Funds of India (AMFI)-trained person at each of 70 branches, Varghese said.

"The customers have wide choice of investment products and banks are now compelled to offer competing saving products, he added.

Apart from selling insurance - life and non-life - products, Corporation Bank also has tied up LIC Mutual Fund to hawk its schemes through branches.

Damodaran added, "We have received approval from the Securities and Exchange Board of India to float six thematic funds and PMS.

UTIMF will launch thematic funds one by one based on investors preference.

The first one is likely to be auto fund. On being asked about introduction of PMS, Damodaran said, "The scheme meant for high networth individuals (HNIS) will have a separate fund management team, research support and marketing support."

He also informed that the assets under management has grown by over Rs 5,000 crore to cross Rs 20,000 crore as on date living up to the "trust and expectations" of the investors.

Damodaran said the country's largest mutual fund has been able to survive as it outside the realm of controversies about preferential treatment within the same scheme for big-ticket investors.

It is also tying up with Allahabad Bank for looking at the eastern region.

Damodaran also informed that Bank of India, IL&FS and Standard Chartered Bank among others are likely to pick up a stake in its Asset Reconstruction Company.