UTI Mutual merging 5 schemes

UTI Mutual Fund is merging five of its schemes UTI-PEF Unit Scheme (UTI-PEF), UTI-Unit Scheme 92 (UTI-US 92), UTI-Master Equity Plan 1998 (UTI-MEP 98), UTI-Master Equity Plan 1999 (UTI-MEP 99) and UTI- Grandmaster Unit Scheme into UTI-Opportunities Fund.

The idea is to reduce the multiplicity of existing equity oriented growth schemes with similar objectives, said a senior UTI MF executive.

UTI-Opportunities Fund will predominantly invest in four to five sectors that are expected to outperform the broader market in the short to medium term.

D S R Murthy, executive director, UTI-AMC, said: "The main focus of UTI-Opportunities Fund is to capitalise on opportunities arising in the market by responding to the dynamically changing Indian economy by moving its investments amongst different sectors as prevailing trends change. As markets evolve and grow, new opportunities for growth keep emerging. UTI-Opportunities Fund would endeavor to capture these opportunities to generate wealth for its investors."

UTI MF may further merger few of its scheme if they are of similar objective, Murthy said.

A K Sridhar, chief investment officer, UTI AMC said, "The aim of the scheme is to outperform plain vanilla equity funds, which are more diversified but at the same time minimise the risk arising from pure sector funds while generating a reasonable return."

The scheme will invest in companies/sectors, which present good growth opportunities. Vinay Kulkarni will be the fund manager of UTI Opportunity fund.

The investment objective of UTI-Opportunities Fund is to generate capital appreciation and/or income distribution by investing the funds of the scheme in equity shares and equity related instruments.

The scheme will invest a minimum of 90 per cent and a maximum of 100 per cent in equity and equity-related instruments and balance in debt/money market instruments.