UTI expects 20% returns from India Lifestyle Fund

UTI Asset Management Company (UTI AMC) expects to generate returns of 20 per cent from its newly-launched mutual fund product UTI - India Lifestyle Fund.

Gautam Desai, Fund Manager, UTI AMC, said, "The newly-launched fund has the potential to generate returns of 20 per cent due to the change in the Indian demographics, lifestyles and rising consumption pattern."

According to Desai, the change in lifestyle in India has boosted various sectors like retail sector and retail chains like Pantaloon, Vishal Mart are witnessing tremendous growth.

The growth in other sectors which has a direct correlation with the lifestyle and human consumption will continue to witness an exorbitant growth as the overall economy of the country is buoyant at present.

The economic growth has led to further opening up new job opportunities. This has given enough disposable income to today's youth. Sectors like automotive, retail, telecom, consumer finance, foods, housing, personal care, health care, fashion accessories, leisure, entertainment and tourism are also booming.

The success mantra for these products is to tap those sector which will witness growth due to the change in the Indian lifestyle. The company is targeting to raise Rs 2,000 crore from across the country.

Meanwhile, in Gujarat and Rajasthan the company expects to raise approximately Rs 200 crore.

Ramesh Meena, Regional Head, Gujarat and Rajasthan, said, "We expect to garner Rs 100-125 crore from Gujarat while from Rajasthan we expect to raise Rs 75 crore." However, the company complains that the state is not much enthusiastic about investing in mutual fund.

UTI - India Lifestyle Fund is a three-year close-ended equity oriented scheme with an investment objective to provide long term capital appreciation and/or income distribution from a diversified portfolio of equity and equity-related instruments of companies that are expected to benefit from changing Indian lifestyles, demographics and rising consumption pattern.

According to the company, the broad investment strategy of the scheme will be to benefit from the momentum of a consumption-led growing economy. The scheme aims to build and maintain a diversified portfolio of equity stocks that has potential to appreciate in the long run.

Over the last few years, due to the rising income levels, the Indian consumers have changed their attitude towards money and quality of lifestyle.

Indian consumers are showing a marked preference for new products and services that deliver higher levels of quality than the conventional items. This has changed the scale of demand for household goods and services.