Uti Expects Rs 50 Crore Mop-Up From Index Equity Fund

The Unit Trust of India (UTI) is expecting only Rs 50 crore from the Index Equity Fund launched recently.

The trust has admitted that the index fund has not been able to achieve the target mop-up because of an inadequate marketing strategy.

According to G P Gupta, the Unit Trust of India chairman, the offer which ended yesterday had accumulated funds to the tune of only Rs 50 crore.

While the final figures were still awaited late last evening, Gupta admitted that UTI should have marketed the fund aggressively.

We admit that we could not achieve the target that we had set. We strongly believed that the improving secondary market condition was the right time to launch the fund.

 

However, we probably could not convince the investor that this is the best time to invest in such a scheme, he said.

Gupta is of the opinion that the Index Equity Fund is a very good product and has no doubt whatsoever regarding its performance. The fund is expected to perform very well, he said.

The trust launched the UTI Index Equity Fund with an intention to capitalise on the renewed upswing in the market.

The initial offer for UTI Index Equity Fund scheme ended yesterday.