Mutual funds have been a significant source of investment in both government and corporate securities. It has been for decades the monopoly of the state with UTI being the key player, with invested funds exceeding Rs.300 bn. (US$ 10 bn.). The state-owned insurance companies also hold a portfolio of stocks.
UTI Mutual Fund is all set to open around 200 branches across the country by March, next fiscal.
The company aims to further expand its distribution network from 97 UTI Financial centers to 200 centers covering around 422 districts.
According to the company, it will open new UTI Financial Centre in Anantnag, Baramulla, Doda, Jammu, Kathua, Kupwara, Kargil, Ladakh, Poonch, Pulwama, Rajouri, Srinagar and Udhampur, to focus on service sector in Jammu and Kashmir.
The latest move is in line with company’s strategy of making its products and services easily accessible to its clients.
UTI Mutual Fund is a SEBI registered mutual fund whose sponsors are State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation of India.
UTI Mutual Fund has assets under management of Rs 46,947.32 crore under its 95 domestic plans as of August 31, 2008.
UTI Mutual Fund today said it will continue selling Unit Linked Insurance Product (ULIP) to its customers even though there is no clarity on the issue of fund houses selling such products. “We have been selling the ULIP plan to the customers of the Balance Fund since 1971 and would continue to do so,” said UTI Mutual Fund Chief Marketing Officer Jaideep Bhattacharya.
UTI sells ULIP plan of Life Insurance Corporation which happens to be one of the sponsors of the fund house.
The product has been sold to about 5 lakh customers and has asset size of about Rs 3,100 crore, he said.
It is one of the low cost product available in the market, he said, adding the cost is as low as 3 per cent as compared to up to 62 per cent in the market.
Of late, many companies have set up mutual fund houses in order to capitalize on India’s booming economy. But do you know which of these were the first to set up shop in India? And how are they doing now?
The Indian mutual fund industry boasts of some of the most popular names of the business world, both Indian as well as foreign.
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