UTI launches three year, closed ended Lifestyle Fund

Chennai, Jul 02 (UNI) UTI Mutual Fund today launched a new scheme, UTI-India Lifestyle Fund and the New Fund Offer (NFO), which would close on July 25.

Addressing a press conference here UTI's Executive Director and Chief Investment Officer A K Sridhar said purchase of units would be available only during the NFO period.

He said the Lifestyle Fund is a three-year close-ended Equity Oriented scheme with an investment objective to provide long-term capital appreciation and or income distribution from a diversified portfolio of equity.

Equity-related instruments of companies were expected to benefit from changing Indian demographics, Indian lifestyles and rising consumption pattern, he added.

Mr Sridhar also pointed out that the broad Investment strategy of the scheme would be to benefit from the momentum of a consumption-led growing economy. The scheme aims to build and maintain a diversified portfolio of equity stocks which have the potential to appreciate in the long run, he added.

He said the face value of units was Rs 10 and the maturity of the scheme was three years from the date of allotment. On maturity, the scheme would automatically be converted into an open-ended scheme.

The minimum investment was Rs 5000 and in multiples of Rs One thereafter without any upper limit.

To a question, Senior Vice-President, UTI's Asset Management Company Mr R Raja said over the last few years, due to rising income levels, the Indian consumers have changed their attitude towards money and quality of lifestyle.

They were showing a marked preference for new products and services that deliver higher levels of quality than conventional items, he said, adding this has changed the scale of demand for household goods and services like autos, home goods, telecom, consumer finance, leisure, entertainment and media.

UTI-India Lifestyle Fund endeavours to invest in companies, which benefit directly from changing lifestyles of people in India, he added.

UNI