UTI Infrastructure Advantage Fund

UTI Infrastructure Advantage Fund
India’s infrastructure sector is expected to witness huge investments in the coming years. To enable you to take advantage of this boom, UTI now launches the UTI Infrastructure Advantage Fund. As a 3 year close ended fund it focuses on investing in high growth infrastructure sectors such as Airports, Banking, Construction, Engineering, Energy, Mining, Ports and Power among others.
INFRASTRUCTURE-THE FIRST CHOICE
The importance of infrastructure for India’s sustained economic development is well recognized today. Investment in this sector has gained momentum in the last few years and is experiencing rapid growth across the different sub-sectors. Enormous growth opportunities are going to emerge in the near future as well.
The Government of India has already started major initiatives including plans to open up the infrastructure development to private sector companies in order to further boost up the growth and development. Let’s take a quick look at some of the initiatives in the infrastructure sectors:
Highways:
An ambitious National Highway Development Programme (NHDP), involving a total investment of Rs.2,20,000 crores upto 2012 is underway.
Railways:
(a) To build dedicated freight corridors in the Western and Eastern high-density routes.(b) Technological upgradation and modernisation for higher operating ef?ciency.(c) PPP (Public Private Partnership) envisaged in new routes, railway stations, logistics parks, cargo aggregation, warehouses etc.
Ports:
(a) Empower and enable the 12 major ports to attain world-class standards.(b) Plan for improving rail-road connectivity of major ports, which is to be implemented within a period of three years.
Airports:
(a) Green?eld international airports at Bangalore and Hyderabad have been approved and are currently under construction.(b) A comprehensive plan for the development of other 35 non-metro airports is also under preparation.
Telecom:
250 million subscribers by December 2007. Over 4 million new users being added every month.
Power:
(a) Power for all by 2012. Additional 60,000 km of transmission network to be put up by 2012.(b) Total investment opportunity of about US$ 200 billion over a seven year horizon.
Private Sector participation in infrastructure
The share of public and private investment in the total infrastructure investment during the 11th plan is projected to be about 70 % and 30% respectively, in contrast with 83% and 17% respectively during the 10th Plan. Telecom, Ports and Airports are some of the sectors where private investment is expected to constitute more than 65% of the total investment.All these initiatives are going to put infrastructure reform process in the fast lane and drive the Indian economy on an accelerated growth path. Thus companies in the infrastructure sector / sub sectors are going to see greater opportunities / value in the times to come.
UTI Infrastructure Fund: An Impeccable Track Record
UTI Mutual Fund has an impeccable track record in the management of an Infrastructure Fund called UTI Infrastructure Fund. We were one of the ?rst to spot the opportunity in 2004 when the sector really took off. The fund has a consistent performance track record and it is one of the best schemes in the equity diversi?ed category with a one-year return of 79.95 % as on 1st Nov. 2007 (as per Value Research). Currently the scheme has been rated as a 5-Star Fund by Value Research. (Source: www.valueresearchonline.com)