The fund will be predominantly invested in MNC stocks and aims to provide capital appreciation. The fund opened for subscription on April 15 and closes on May 29. The fund will open for repurchase after six months, i.e. from December 1, 1998. Then, the fund will be open to all investors for seven days every month. While the offer to UGS 2000 and UGS 5000 investors is at an entry load of 6 per cent, subsequent investors will be charged an entry load of 3 per cent.

The fund has a strong investment appeal as the MNC stocks in which the fund will be invested, are well managed companies with leadership position in most sectors of our market. Moreover, the fund's focus on MNCs is more relevant today, as the stocks command steep premium as reflected intheir P/Es. The retail investors keep away from these stocks because of their high price. UGS 10000 will make MNC stocks accessible to retail investors.

Moreover, with its clear focus, UGS 10000 has the potential to add substantial value by its fund management.

UGS 10000 will also be a distinct fund among the equity fund portfolio of UTI. Based on the portfolio characteristics of all other equity funds of UTI, one can barely distinguish between funds as most of the equity funds are invested in blue-chip large capitalisation stocks.

The fund's structure, being an interval fund, is also beneficial to investors as it will provide liquidity at NAV related price every month. Most other closed-end listed funds of UTI trade at steep discounts to their NAV. UGS 10000 is the second interval fund after Shriram Interval Fund.

Also, because of the no-load on initial offer, the fund will start with a NAV of Rs 10.

Based on its innovate structure, clear focus and the market showing signs of a sustained revival,the fund deserves being in an equity investors portfolio.