The new fund offer opened for subscription on December 04 and closed on December 18.
UTI Mutual Fund’s Focused Equity Fund has beaten its own record, in terms of collection from NFO of a closed fund in recent times.
The first series which closed for subscription on August 27 had collected Rs. 770 crore and the series two which closed for subscription on December 18 has mopped up a whopping Rs. 900 crore. This is the highest collection by a closed end fund in the recent past.
Suraj Kaeley, Group President –Sales & Marketing told Cafemutual that UTI Focused Equity Series II has received 75,000 plus applications. This indicates that the fund received a minimum ticket size of Rs. 1.20 lakh per application.
Its first series had received around 67,000 applications. A senior UTI official said “Our product was liked by distributors because of its strengths. The overall market sentiment is also positive which has helped us get a good response.”
Benchmarked against S&P BSE 200 index, UTI Focused Equity Fund will hold a concentrated portfolio of up to 30 stocks. The scheme will invest in companies across market capitalization in either growth or value stocks or both.
The scheme will use a combination of top down and bottom up approach to identify and invest in companies that exhibit strong and sustainable growth and are valued at prices which are at a discount. The fund managers will identify companies on the basis of a combination factors like business fundamentals, growth prospects, industry scenario, sustainable cash flows and management competence.
The fund will be managed by Anoop Bhaskar and Lalit Nambiar.
The
industry has launched more than 40 closed funds in the last 13 months which have
collected in excess of Rs. 9,000 crore.
