UTI Mutual Fund launches plans in Lucknow

UTI Mutual Fund today in Lucknow announced two new schemes "" UTI Long Term Advantage Fund (LTAF) and UTI Capital Protection Oriented Scheme (CPOS)"" which are close-ended schemes. The schemes were earlier launched in Chandigarh.

The LTAF has a lock-in period of minimum three years. On the other hand CPOS comprises two plans "" a three-year plan with a duration of three years from the date of allotment and five-year plan with a duration of five years from date of allotment.

The offer closes on March 20 and January 25, 2007, respectively.

The company has set a target of Rs 500 crore for LTAF, within the state, minimum initial investment for which is Rs 500 and in the multiples of Rs 500. While that for CPOS for the state is Rs 300 crore, the minimum initial investment for which is Rs 10,000 for dividend option and Rs 5,000 for growth option.

Talking to Business Standard, D K Singh, Chief Manager (Lucknow branch) said, "The company under LTAF hopes to raise Rs 75 crore from Lucknow and for CPOS it is set to be Rs 50 crore. Kanpur being the most significant player in terms of investment accounts for about 80 per cent of the total funds raised from the state. It is followed by Varanasi holding a share of 45-50 per cent."

UTI-Wealth Builder Fund, which was introduced in September last year raised Rs 175 crore from the state while the amount accumulated by Lucknow was about 15 crore.