UTI MF to merge some schemes under revamp

UTI MF, the largest mutual fund in the country, is looking to restructure its portfolio further. The exercise includes merger of some schemes and launch of new fund offerings.

Joydeep Bhattacharya, chief marketing officer, said the fund would merge 5-6 existing funds, which had common features and structures, by December. "We want to streamline our portfolio further. The merger is aimed at doing that," he said.

UTI MF, which had already merged three equity-linked savings schemes into one fund, manages 60 schemes.

The biggest merger could be between UTI Balanced Fund and Unit Scheme 2002, both balanced funds with equity portfolio accounting for 40-60 per cent of their fund size.

The combined fund size is close to Rs 1,180 crore, of which UTI Balanced fund has Rs 571 crore and US 2002 Rs 599 crore. Both the funds have identical equity exposure at 61 per cent with maximum weightage in pharma, automobile, cement, FMCG and energy sectors.

On new fund offerings, Bhattacharya said the AMC was likely to come out with a closed-ended equity scheme and a debt fund in December.

According to him, the last NFO from UTI MF, the closed-ended equity scheme Wealth Builder has mobilised Rs 925 crore in October. More than 10 per cent of the fund came from overseas investors. "We are happy with the October performance.

There is a net addition of Rs 3,035 crore in our assets under management taking the total AUM to Rs 37,790 crore. This is quiet good compared with average industry performance," he added.

Bhattacharya said UTI MF expects overseas investors to account for at least 10 per cent of NFO mobilisations.