UTI Fixed Term Income Fund Series V To VIII - Nov 1, 2008

UTI Mutual Fund has opened initial offer period of UTI Fixed Term Income Fund Series V-VIII on 31 October 2008 till 6 November 2008. The new offer price of units is Rs 10 per unit. The date of allotment will be 6 November 2008.

The 13 months plan will open for redemption on 10 November 2008, which will mature on 7 December 2009. It is a close-ended income scheme with an investment objective to generate regular returns by investing in portfolio of fixed income securities normally maturing in line with the maturity period of the plan.

The scheme offers investors retail, institutional and super institutional plan with growth and dividend options. The minimum application amount under retail option for dividend sub option is Rs 10,000 and for growth sub option is Rs 5,000 and in multiples of Re 1 thereafter. The minimum application amount under institutional option is Rs 50 lakh and in multiples of Re 1 thereafter.

Under super institutional plan, the minimum investment amount is Rs 1 crore and in multiples of Re 1 thereafter. The scheme will invest up to 5-100% in debt including securitised debt and 0-95% in money market instruments. The scheme may endow up to 100% in the securitised debt. The performance of the scheme will be benchmarked against CRISIL Short Term Bond Fund Index.

As the scheme is of close-ended nature, it is not applicable to entry load. The fund will ask 3% as an exit load for redemption on or before 367 days from the date of allotment. No exit load will be levied if the investment is redeemed after 367 days from the date of allotment.