With a couple of equity-linked products lined up for domestic and a scheme to tap overseas security market in the last quarter, Unit Trust of India is expecting to increase its customer base to ten million by fiscal end. Apart from recently-launched UTI Infrastructure Advantage Fund expected to add seven lakh customers, UTI is vying to expand its clientele by strengthening its distribution network, launch of portal for
online transactions of units and aggressive marketing.
The third largest mutual fund company is likely to mop up Rs 70,000 crore in the last quarter through various schemes. “UTI Infrastructure Advantage Fund is expected to raise around Rs 4,000 crore,” Karan Singh, country head, distribution and private and foreign banking channel, UTI AMC said. The fund will be a much larger spinner of capital compared to infrastructure funds launched by Tata Power and Reliance Capital that rose around Rs 2,200 crore, he said.
UTI that registered highest profitability among mutual companies in the last fiscal plans to launch another equity-linked scheme and a product to tap overseas security market in the last quarter. “On cards is realty fund awaiting SEBI’s nod,” Singh told FE. He said that UTI’s portal for sale and purchase of products is expected to expand its clientele. The private investment that contributed 17% against 83% in 10th plan has jumped to 30% whereas public stands at 70% in the 11th plan. The customer base, for various products of UTI at present, stands at
8.5 million.
Highlighting the performance of infrastructure companies, he said that investment in infrastructure has given returns of 57% compared to 50% by Sensex in last three years. “In the last one year infrastructure related investments has given robust 85% returns,” he said.
“North holds 30% of the market and is expected to invest around Rs 150 crore through the infrastructure scheme,” Deb Bhattacharya, fund manager, UTI asset management, said. UTI is expanding its distribution network to 120 outlets from 79 at present in the current fiscal. Out of these three would be opened at Patiala.