UTI expects Rs 2000cr from Lifestyle Fund

UTI Asset Management Company (AMC) expected an approximate 500,000 investors to put in over Rs 2000 crore into its newly launched UTI India Lifestyle Fund, a three-year close-ended equity fund with automatic conversion into an open ended scheme on maturity.

The minimum amount for application is Rs 5000 and in multiples of Re 1 thereafter without any upper limit.

The product will be available through various distribution channels including online platform.

The objective of the fund is to provide long term capital appreciation and income distribution from a diversified portfolio of equity and equity related instruments, said Jaideep Bhattacharya, chief marketing officer of UTI AMC.

The fund will be driven by changing Indian demographics, changing Indian lifestyles and rising consumption pattern, he added.

Bhattacharya pointed out that Lifestyle Fund would be invested in companies which benefited directly from changing lifestyles.

Harsha Upadhyaya, fund manager of UTI AMC, said, "We targeted around 235 stocks of companies related to lifestyle segment directly or indirectly".

Lifestyle stocks posted a growth of 38 per cent from April 2004 to March 2007.

The sectors for investment included automobiles, home goods, retail, consumer finance, housing, healthcare and entertainment.

The growth rate for mutual fund was expected to be 25 per cent and Rs 18-20 lakh crore will be invested on mutual funds by 2015, Bhattacharya said.

He was bullish on the growth of UTI India Lifestyle Fund against the backdrop of higher disposable income of the youth fuelled by BPO investments and exposure of the average Indian to global lifestyle products.

The new fund opened on July 2 and would close on July 25.

UTI Mutual Fund had assets under management of Rs 40,070 crore and investor accounts of 8 million under 71 domestic schemes.