Friday, December 17, 2010

UTI MF Announces Merger of Infrastructure Advantage Fund – Series I into Infrastructure Fund

With effect from 14 January 2011 

UTI Mutual Fund has announced the merger of UTI-Infrastructure Advantage Fund – Series I into UTI-Infrastructure Fund with effect from 14 January 2011. UTI- Infrastructure Advantage Fund – Series I is a 3 year close ended equity scheme launched in November – December 2007 is due for maturity on 17 January 2011. 

In pursuant to the merger of scheme, the option chosen by the investor (growth or dividend) will remain same in the merged scheme i.e., UTI-Infrastructure Fund. 

UTI-Infrastructure Advantage Fund – Series I investors will be allotted units of UTI-Infrastructure Fund as per the applicable NAV. As a result, UTI-Infrastructure Fund would have an increased investor base and corpus to the extent of switchover from UTI-Infrastructure Advantage Fund – Series I. 

Unitholders of the scheme who are not in agreement with the merger may redeem their units at applicable NAV without payment of exit load from 16 December 2010 and 14 January 2010 (both days inclusive). 

The conversion will be done at the NAV computed for UTI-Infrastructure Advantage Fund – Series I and UTI-Infrastructure Fund on 14 January 2011. 

Change in Fundamental Attributes of UTI-Infrastructure Fund
 
With effect from 14 January 2011the fundamental attributes of UTI-Infrastructure Fund will be changed as follows: 

Investment Objective: The investment objective of the scheme is to provide income distribution and / or medium to long term “capital appreciation” by investing predominantly in equity/equity related instruments in the companies engaged either directly or indirectly in the infrastructure growth of the Indian economy. 

Asset Allocation: The scheme would allocate 65% to 100% of assets in equity and equity related instruments of companies engaged directly or indirectly in the infrastructure sector. It would further allocate upto 35% of assets in debt and money market instruments including securitised debt.