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UTI Capital Protection Oriented Scheme - Series I

This close-ended scheme from UTI Mutual Fund aims to protect your invested capital. However, it must be noted that the fund only aims to protect the capital and does not guarantee it.

The scheme offers two tenures - three years and five years. Unlike the recently-launched close-ended mutual funds, this fund does not offer any interim redemption options.

The objective of capital protection will be achieved through investments in fixed income securities. To bolster its performance, investments in equity and equity-related instruments will be limited to a maximum of 30 per cent for the five year plan and 20 per cent for the three year plan.

The portfolio structure of the scheme is rated AAA (so) by Crisil. The rating is only a measure of the fund's ability to pay off the face value of the units invested and is not based on the funds ability to generate high returns. This rating will be reviewed on a quarterly basis.

Amandeep Chopra is the fund manager. Chopra has been reasonably successful in managing debt-oriented funds.
Unit cost during NFO: Rs 10
Type of fund: Close-ended Fund
Options: Growth; Dividend payout
Minimum investment: Rs 10,000 for dividend payout and Rs 5,000 for growth
Benchmark: CRISIL MIP Blended Index
Fund Manager: Amandeep Chopra
Offer opens: December 26, 2006
Offer closes: January 25, 2007