UTI MF's Leadership Fund rakes in Rs 2030 cr

UTI Mutual's Leadership Equity Fund collected almost Rs 2,030 crore from subscriptions, which closed on January 30.

The fund had received about 3.3 lakh applications. MD and CEO U K Sinha said: "We are overwhelmed by the response. The money has come predominantly from retail investors."

Sinha further said there was no redemption pressure, though there was some amount of churning. Since UTI Mutual has been consistent and liberal in paying dividends in all its equity funds, investors were not redeeming units to book profits, he added.

Collections have been good in new mutual fund schemes in the past few months. SBI MF's SBI Bluechip collected close to Rs 2,800 crore from 7 lakh applications. Industry sources, however, said the new funds' collections are misleading due to major churning.

Investors are pulling out from existing funds and ploughing them into new fund offerings. Distributors too are happier selling new funds as sales commissions are significantly higher at 4-5 per cent compared to 2-2.25 per cent for existing schemes.

Currently, more than half a dozen funds, including Chola Contra Fund, ING ATM, Kotak Lifestyle, Prudential Fusion, Birla Sun Life Infrstructure and PNB Principle Infrastructure, are open for subscription. There is also a long list of funds awaiting Sebi approval.