UTI MF to launch pension funds, GETFs

UTI Mutual Fund is ready to take on pension funds and Gold Exchange Traded Funds (GETFs) once the regulators permit mutual funds to participate in these schemes, said D S R Murthy, executive director, UTI Asset Management Company (AMC).

On the sidelines of opening one of the two UTI Financial Centres (UFCs) in Chennai inaugurated by K C Chakrabarty, chairman and managing director, Indian Bank, Murthy said that UTI AMC is ready with the basic structure of the schemes but is waiting for Securities and Exchange Board of India (Sebi) to spell out the norms.

He remarked that out of their total assets under management (AUM) worth Rs 23, 000 crore, 20 per cent comes from the Southern region. The distribution through post offices and PSU banks is doing good in the South especially in regions like Chennai and Madurai.

He added that most of their individual investors are from south of the Vindhyas. "By the end of April, most of the post offices will also function as financial marts," he said.

To reach out to retail investors by bringing service to their doorsteps, UTI Mutual Fund is planning to add 18 new UFCs to its distribution network by the end of this fiscal.

It will also have multiple UFCs in tier-2 cities. The company already has 63 UFCs, 271 chief representative officers and over 20,000 AMFI certified financial advisors.