UTI Mutual Fund has launched a new market-neutral fund - UTI SPrEAD Fund. The New Fund Offer opens on June 9, 2006 and closes on June 22, 2006. The fund will re-open for continuous purchase and redemption on July 6, 2006.
An open-ended equity scheme, UTI SPrEAD Fund aims to provide capital appreciation and dividend distribution through arbitrage opportunities arising out of price differences between the cash and derivative market by investing predominantly in equity and equity-related securities, derivatives and the balance portion in debt securities. It would benchmark its performance against CRISIL Liquid Fund Index.
The minimum initial investment in the fund is Rs 5,000. The fund would not charge any entry load during the new fund offer period as well as on a continuous basis. But the exit load would be charged as follows:
Application size Holding period (Days) Exit load (%)
< Rs 2 crore < = 180 days 0.75%
=>Rs 2 crore < = 25 days 0.50%