'Good response for UTI Contra Fund'

Bangalore, Mar 6 (UNI) UTI Contra Fund, the new fund offer from UTI Mutual fund on the new concept of investing in out-of-favour stocks, is receiving good response from investors, UTI Assessment Management Company Pvt Ltd Chief Marketing Officer Madhavakumar informed today.

Speaking to newspersons here, he exuded confidence that UTI Contra Fund, an open-ended equity-oriented scheme, would be well endorsed by investors. The proceeds of the Fund would be invested in stocks and sectors that were currently out of favour, but had fundamentally strong and transparent managements and enjoyed sustainable and significant competitive advantages with long term earning potential. The Contra Fund would take all precautionary measures without compromising on the risks involved, he said.

Mr Madhavakumar said the Contra Fund, intended to sell a new and innovative concept using unconventional wisdom to create wealth, was proving to be fruitful.

The steel and cement sectors, which were in the red during the last few years, were doing remarkably well now mainly due to the good long term earning potential and improving operating parameters.

The fund managers would invest only on those stocks that were likely to outperform in the future.

Mr Madhavakumar said the investment objective of the fund was to provide long-term capital appreciation by investing in equity markets and adopt a contrarian approach and look for out-of-favour and under-valued stocks because of emotional and behavioural patterns in the stock market.

He said the new fund offer, which would close on March 22, would re-open for continuous purchases and redemption on April 20.

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