Long term investment in equities profitable: UTI

Panaji, Sept 12: Long term investment in equities, particularly for a 5-year-period,is more profitable than investing in fixed deposits and other short term instruments, says a mutual fund expert.

Announcing the launch of its 5-year close-ended scheme ''Unit Trust of India (UTI) Wealth Builder Fund'' in Goa today, the fund manager Mr.Amardeep Chopra told media persons that the investors could reap rich dividends through long term investment for not less than five years as substantiated by a study of different equity schemes over the years.

The new scheme open for subscription since September 7 till October 11,envisaged investment of its funds in frontline value stocks with strong fundamentalists besides utilising in derivates to hedge the portfolio, he said.

''It is a feather in its cap if the investment circles describe UTI as conservative, as we prefer to remain conservative in the overall interests of the investors,'' he said.

The UTI, which had launched 9 mutual funds over the last 3 years,had been managing Rs.35,000 crore assets with over 70 lakh investor base even as it disbursed Rs.400 crores as dividend to its investors since 2003 under various schemes,Mr.Chopra said.

The UTI, he said, had invested Rs.15,000 crores in equities and the rest in debt fund and its intrinsic merit was its huge distribution network to disburse its instruments across the country.

The NFO,which becomes a open ended scheme after five year maturity period, was expected to garner at least Rs.1500 crores. Minimum investment for the scheme is Rs.5,000,he added.

UNI