UTI launches capital protection and long term mutual funds

Chandigarh, Jan 8 (UNI) The UTI Mutual Fund has announced the launch of capital protection and long term funds here today.

''UTI-Capital Protection Oriented Scheme-Series 1, which closes on January 25, is a close-end capital protection oriented scheme,'' Vice President N K Nair told mediapersons.

He said the scheme, which consists of three and five-year plans, endeavours to protect the capital by investing in high quality fixed income securities as primary objective and generate capital appreciation by investing in equity related intruments as secondary objective.

''The scheme's portfolio structure has been rated AAA (SO) by Crisil Ltd, which indicates highest degree of certainty regarding payment of face value of investment to unit holders on maturity,'' he added.

About the UTI-Long Term Advantage Fund, which closes on March 21, he said it is a 10-year close-ended equity linked savings scheme with redemption facility after an intial lock-in-period of three years from the date of allotment at relevant redemtion price.

He said the investment objective of the scheme was to provide medium to long term capital appreciation along with income tax benefit. Investment made in the scheme would qualify for deduction from gross total income up to one lakh rupees under section 80 C of the Income Tax Act, he added.

The broad investment strategy of the fund would be to invest in equity and equity related securities of well-managed and high-quality companies that have the potential to grow at a reasonable rate in the long term, Mr Naik said.

UNI