UTI launches infra advantage fund series

With the launch of its Infrastructure Advantage Fund Series I, UTI Mutual Fund expects to raise Rs 150 crore from Punjab, Chandigarh, Himachal Pradesh, Jammu & Kashmir and Haryana.

In order to increase its penetration in the region, it has plans to open three more offices.

In an interaction with Business Standard, Ashok Kumar, region head, UTI AMC said, "We hope with the launch of this fund we would be able to attract an investment of Rs 4,000 crore from across India. So far this part (Punjab, Chandigarh, Himachal Pradesh, Jammu & Kashmir and Haryana) of the region is concerned, we are hopeful this fund would raise Rs 150 crore."

Commenting upon branch expansion, he said, "By the end of the current financial year, our total branch network would touch 120 from 79. Out of the total, 4-5 branches alone would be opened in the NCR region. Further, we are planning to open three more offices in Panipat, Patiala, and Jammu." The company has already opened a new branch in Jalandhar.

The company has total assets of Rs 51,753 crore under management and investor accounts of over 8 million under its 73 domestic schemes (as of October 31, 2007). It hopes the total asset under management would touch Rs 70,000 crore by the end of this financial year, with an investor base of 10 million.

The UTI Infrastructure Advantage Fund Series I is a three year close-ended equity scheme with an investment objective to provide income distribution and/or medium- to long-term capital appreciation by investing predominantly in equity/equity related instruments in the companies engaged either directly or indirectly in the infrastructure growth of the country.

He added, "The scheme aims to build and maintain a diversified portfolio of equity stocks within the infrastructure theme that has the potential to appreciate in the long run. The scheme will invest in sectors that include construction, energy, engineering, metals, power, telecom, transportation, airports etc."