UTI Mutual Fund seeks SEBI nod to launch a new equity savings scheme

UTI Mutual Fund has sought the approval of Securities and Exchange Board of India to launch UTI Equity Savings Fund-Series 1,  as per the information on the SEBI website.

The fund house proposes to launch six series under the equity savings fund. The tenure of each scheme will range between 450 days and 2200 days and will be decided at the time of the launch.

The close-ended equity scheme will deploy 65-90 percent of its assets in equity securities and derivatives. Of which, 40-85 percent will be invested in cash futures and 5-25 percent in net long equity exposure.

Net long equity exposures are aimed to gain from potential capital appreciation of these positions. Thus, it is a directional equity exposure which is not hedged.

Option: Growth;

Minimum investment: Rs 5,000 and in multiples one rupee thereafter;

Entry load: Nil;

Exit load: Nil;

Benchmark index: 40 percent CRISIL Liquid Fund Index, 30 percent CRISIL Short Term Bond Fund Index and 30 percent Nifty 50

Fund Manager: Kausik Basu