UTI new fund offer timed for high returns in equity market

The asset management company hoping to raise at least Rs 500 cr through the new fund

UTI Mutual Fund, which is launching a close ended equity fund called 'Focussed Equity Fund-Series 1' with a three-year maturity period on August 14, said the new fund was timed to take advantage of a cycle of high returns expected to begin from the ongoing bull run in the Indian equity markets.

Lalit Nambiar, fund manager of the proposed fund, said on Thursday that most of the key drivers of growth are turning positive to push the demand while the new fund will choose the equity of companies that are well positioned to increase their bottom-line including those of the cyclical sectors during this period.

The UTI asset management company, which has 9.53 million investor accounts under its 121 domestic schemes, is hoping to raise at least Rs 500 crore through the new fund in the light of a consistent flow of funds into equities in the last three months, according to Nambiar.