MUMBAI:
UTI Mutual Fund has launched a 10 year close-ended Equity linked Savings Scheme “UTI- Long Term Advantage Fund-Series VI ”. The New Fund Offer opened on October 5, 2017 and closes on January 12, 2018.
The primary objective of the scheme is to generate long term capital appreciation over a period of 10 years by investing predominantly in equity and equity related instruments of companies along with income tax benefit. However, there can be no assurance that the investment objective of the scheme will be realized.
Lalit Nambiar, fund manager of the scheme said, “It is apparent that gainful employment for the huge section of working population which lives in rural India, can only be achieved by improving the productivity and the economics of the farm. The Prime Minister has publicly stated that he wants to double farmer income by 2022 and ensure employment for this massive workforce.
There is a holistic and concerted government effort to improve farm incomes – by optimising delivery of agri inputs, enabling better price discovery for farmers and protecting them from risks through greater crop insurance coverage. These efforts are likely to be sustained over many years.
Further, the scale and efficiency of the effort is possibly unprecedented as it uses the JAM trinity (JanDhan-Aadhar- Mobile) to optimize targeting of government resources. These initiatives are likely to result in a sustained improvement in farm economics, raising farm surpluses and incomes for this immense slice of India’s population living in rural India. This secular increase in income is an incredible sales prospect for the companies catering to the farm as well as home needs of rural India. “
“In order to take advantage of this phenomenon, UTI Long Term Advantage Fund-Series VI intends to align itself closely to the prospects of the probable beneficiary companies, which should be big winners over the next few years. The potential stock picks span, makers of farm inputs – fertilizer, irrigation pumps & pipes; consumption plays focused mainly on rural homes, including makers of brown and white goods and lower-end consumer staples. It would also look at companies catering to rural asset ownership – including material for home-building, makers of tractors, 2-wheelers as also small cars. Other companies to benefit would be those financing this rise in rural aspirations. “ added Lalit.
