UTI launches two products in Andhra Pradesh

Vijayawada, Jan 5: UTI Mutual Fund launched two new products - UTI Long-Term Advantage Fund and UTI-Capital Protection Fund here today.

Talking to newspersons here, UTI Mutual Fund Asst Vice-Presidents Roka Maliyadri and M Muthuraman said the purchase of units would be available during the new fund offer period valid upto March 20.

They said on long-term advantage fund, it is a ten-year close-ended equity-linked savings scheme with a redemption facility, after an initial lock-in-period of three years from the date of allotment at relevant redemption price.

The objective of the scheme was to provide medium to long-term capital appreciation along with Income Tax benefit, Mr Maliyadri said adding investment made in the scheme would qualify for deduction from gross total income upto Rs 1,00,000 under section 80-C of the Income Tax Act, 1961.

Mr Muthuraman said the face value unit is Rs ten and the duration of the scheme is ten years. The units under the scheme stand automatically redeemed on maturity.

Mr Maliyadri said the UTI Mutual Fund is the largest mutual fund in the country with assets under management of Rs 41622.51 crore and investor accounts for over 7.80 million under its 63 domestic schemes, as on November 30, 2006.

He said the plan is open to resident individuals, Institutions, as well as to NRIs and FIIs. However, tax benefit would be availble only to individuals and HUF.

On the UTI Capital Protection Fund, they said it is a close- ended Capital Protection-oriented schemes and consists of two plans- three year plan with a duration of three years from the date of allotment and five years plan with a duration of five years from date of allotment.

They said, it endeavours to protect the capital by investing in high quality fixed income securities, as the primary objective and generate capital appreciation by investing in equity and equity related instruments, as secondary objective.

Mr Maliyadri said for this the face value of unit is Rs ten and each plan would be fully redeemed at the end of maturity period, which is three to five years from the date of allotment for the respective plans.

The purchase of units started on December 26, 2006, would remain upto Janaury 25, he added.

UNI