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UTI-Long Term Advantage Fund


Another close-ended ELSS fund launch, this time from UTI mutual fund. The tenure of this close ended fund is ten years, with a three year lock-in period. The fund aims to invest in well established companies that will grow at a reasonable pace as well as growth stocks that will outperform their respective indices.
The fund will not charge any entry or exit load, but upon redemption before the expiry of 10 years, proportionate unamortized portion of the NFO expenses will be recovered. After the lock-in period of three years, the scheme will offer redemption facility on first five business days of every month at NAV based prices.
UTI Equity Tax Savings Plan and UTI MEPUS are the other Tax Planning funds managed by the AMC. UTI Equity Tax Savings Plan is an open ended fund with a 3 star rating. The fund is managed by Swati Kulkarni. It comes across as a relatively conservative bet in comparison to its aggressive peers. Hence, it has been a below average performer.
UTI MEPUS, on the other hand, is a close ended fund launched in March 2003. The fund posted a return of 40.8 per cent, higher than the category average of 38 per cent during the last one year. Sanjay Ramdas Dongre has been the fund manager since December 2005.
Snapshot
Unit cost during NFO: Rs 10
Type of fund: Close-ended ELSS
Options: Growth, Dividend payout, Reinvestment
Minimum investment: Rs 500
Benchmark: BSE 100
Fund Manager: Swati Kulkarni
Offer opens: December 21, 2006
Offer closes: March 20, 2007