Each asset class moves through different market cycle. Any asset class be it debt or equity or commodity can not go on performing continuously and hence it is important to have different asset classes in one’s portfolio. This help in neutralizing the   uncertainties attached to a particular asset class performance and brings stability to overall portfolio.

With current market uncertainties, what investors need today are more genuinely "counter cyclical" or low-correlated asset classes that can add to one’s portfolios to receive the benefits that  asset allocation offers.

UTI Wealth Builder Fund - Series II - a first of its kind to present an asset allocation route combining two assets class i.e. equities & gold   to build a long term diversified portfolio.

How the asset allocation to gold assets will add value to the portfolio?

If one of your primary objectives is to produce positive investment returns while having a low probability of incurring losses in a reasonable time frame, one must look for  different asset classes that behave differently  in different economic cycles . Gold is one such  asset that is “counter cyclical” in nature. Hence it is an ideal asset for use in portfolio diversification. Data to substantiate this,

• The correlation of return between gold and sensex for the period of 10 is 0.071 which is very low. (Jan 1998 to May 2008)
• The correlation of return between BSE 100 and gold for the period  of 10 years is    -0.056 which is negatively correlated. ( June 1998 to June 2008)

Source: ET 16th July 2008 & Internal

These data suggest that even if the equity markets fall, you can still be sure that your holdings of the precious metal will lend stability to your portfolio.

Who is this fund suited to?

• Investor who seek long-term asset  growth from an asset allocation mix spread across asset classes
• Investor who wish to diversify their portfolio with a long term investment perspective

Why the Scheme invests in Gold ETFs?

UTI Wealth Builder Fund-Series II takes gold exposure through Gold Exchange Traded Funds ( ETFs). Gold ETFs give an investor all the advantages of investing in gold while eliminating drawbacks of physical gold such as

• Storage cost
• Liquidity issues
• Concerns on purity &
• Concerns on safety  

Additionally gold ETFs provide:

• A transparent investment avenue  
• Low cost of operation( lower expenses ratio)
• Control over allocation

Scheme Facts:
Nature of the scheme: An open-ended equity oriented scheme.

Investment Objective:
The objective of the Scheme is to achieve long term capital appreciation by investing predominantly in a diversified portfolio of equity and equity related instruments along with investments in Gold ETFs & Debt and Money Market Instruments. However, there can be no assurance that the investment objective of the Scheme will be achieved.

Investment Strategy:

The broad investment strategy of the Scheme will be to invest in equity and equity related securities of companies including those in the derivatives segment. The Scheme aims to build and maintain a diversified portfolio of equity stocks that has the potential to appreciate in the long term. Companies identified for selection in the portfolio will have the potential to grow at a reasonable rate in the long run.

For investment in gold assets, the fund will take gold ETFs route. Gold ETFs may be selected based on their performance track record and expense ratio.

Asset Allocation:

Debt instruments will also include securitised debt which
may go up to 100 % of the debt portfolio.

Plans / options available:

The scheme offers two plans i.e.  Retail Plan and Institutional Plan with following options;

• Growth Option:
  Ordinarily under this option no dividend distribution will be made and all accrued and earned income will be ploughed back and returns will be reflected through growth in the NAV.
  
  
• Dividend Option:
  Dividend distribution, if any, under the scheme will be made subject to availability of distributable surplus and other factors and a decision is taken by the Trustee to make dividend distribution.

New Fund Offer Price:
During the New Fund Offer Period, the units of the fund will be sold at face value i.e. Rs. 10/- plus load as applicable.

Minimum Investment Amount:
Retail  Plan - Rs.5,000/- and in multiples of Re. 1/-
Institutional Plan - Rs.1 Crore and in multiples of Re. 1/-

Purchase & Redemption of units:
During the New Fund Offer period, the units of the fund will be sold at face value i.e. Rs.10/- plus load as applicable.

Post NFO the Scheme will be open for subscription during each calendar month subject to the condition that not more than 10% of the number of outstanding units allotted as on the last business day of the previous month would be available for the sale in the immediately following month.

The Scheme will offer redemption of units at NAV based prices on every business day on an on-going basis not later than 30 days from the closure of the New Fund Offer period.

Note: No entry load for all direct applications
Product Add ons: The scheme offers Systematic Investment Plan (SIP) and Systematic Transfer Investment Plan (STRIP). Post NFO only.

Net Asset Value:
NAV will be declared on a daily basis within 30 days from the date of closure of the New Fund Offer Period.

 Benchmark Index:

• BSE 100 for the Equity part of the Portfolio,
• CRISIL Bond Fund Index for Debt and Money Market Instruments &
• Price of Gold as per SEBI Regulations for Gold ETFs in India  

Fund Manager:  Harsha Upadhyaya
Registrar:  M/s Karvy Computershare Private Limited
Statutory Details: REGISTERED OFFICE: UTI Tower, ‘Gn’ Block, Bandra Kurla Complex, Bandra (E), Mumbai: 400 051. Phone: 022 6678 6666. STATUTORY DETAILS: UTI Mutual Fund has been set up as a trust under the Indian Trust Act, 1882. SPONSORS: State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation of India (liability of sponsors limited to Rs. 10,000). TRUSTEE: UTI Trustee Co. (P) Ltd. (Incorporated under the Companies Act 1956). INVESTMENT MANAGER: UTI Asset Management Co. Ltd. (Incorporated under the Companies Act 1956).
RISK FACTORS: All investments in mutual funds are subject to market risks and the NAV of the units issued under the fund may go up or down depending upon the factors and forces affecting the securities market. There can be no assurance that the scheme’s objective will be achieved. Past performance of the sponsors /Mutual Fund / Scheme(s) / AMC is not necessarily indicative of future results. UTI Wealth Builder Fund Series II is only the name of the scheme and does not in any manner indicate the quality of scheme, its future prospects or returns. There may be instances where no income distribution could be made. Realization of all assurances and promises made, if any are subject to the laws of land, as they exist at any relevant point of time. The scheme is subject to risks relating to credit, market interest rates, liquidity, securities Lending Re-investment risk and investment in overseas market. Trading in derivatives (the scheme specific risk could be credit, settlement risk, interest rates, liquidity, judgmental error, Interest Rate Swap and Forward Rates Agreements). Please contact the nearest UTI Mutual Fund Branch / Chief Representative or AMFI Certified UTI agent for copy of Key information Memorandum Cum Application Form and Offer document / SID. Please read the offer document/ SID carefully before investing.