UTI Leadership Fund to mop up Rs 1,000 cr
UTI Mutual Fund is likely to mop up Rs 1,000 crore from the recently launched fund that invests in "leader" stocks and may come out with Contra Fund in next three to four months. A key source in the UTI MF said that the company is likely to raise Rs 1,000 crore from the Leadership Equity Fund during the new fund offer period that ends February 2, 2006.
The fund would again be open for continuous purchase and redemption from February 28. The source also said UTI MF would come out with Contra Fund, which invests in those stocks whose market prices are below their fundamentals, in 3-4 months.
UTI MF CMD U K Sinha also said the company has got SEBI approval for Contra Fund. He, however, refused to give the timeframe for launching the fund. He said the company would launch many products this fiscal.
UTI MF, which has set a target to grow its assets under management to Rs 62,000 crore by 2009 against the current level of Rs 25,000 crore, launched Leadership Equity Fund on January 9.
The fund will invest up to 75 per cent of the money into stocks of "leaders" and up to 35 per cent in the potential leaders.
There are just four mutual fund companies in the market which have Contra funds, of them Chola Fund has just launched the fund.
Of the other three, net asset value (NAV) of Contra Fund of SBI MF is highest at Rs 23.81 under the dividend plan and Rs 27.21 under growth plan as on January 27. Other two Contra Funds are from Tata MF and Kotak Mahindra MF.
(The Economic Times)