Executive director BG Daga, said the fund aims to mobilise between Rs 200 to Rs 500 crore, depending on the market conditions for the period for which the fund will be open.

Responding to a query, Daga said the fund managers of the scheme would buy only reasonably priced scrips and will refrain from procuring scrips which are prohibitively high. "We will wait to invest the mobilised amount until we get the right price for the scrip. Timing the market and the price at which the scrip is picked up is the most important criterion for fund management", said Daga. In the UTI Growth Sectors Fund, if a sector was not found to be performing as well as the investor desired, he could switch over between the funds under the umbrella.

Dagaadded the new scheme would not be immune from buying shares from other schemes of the Trust. He said: "Scrips will be purchased either from the market or from other schemes of UTI and it was justified since such sales within the trust saves on a transaction costs. He also said that investments would be made as a business decision adding that inter-scheme transfers of scrips would be done at market rates.

Explaining the need for launching a new sector-specific scheme, Daga said that the existing schemes of UTI did not have focus in their investment strategy, apart from UGS 10000 and Masterindex fund. "We don't have any existing fund that could meet the objectives of the sectoral fund. Also, we have a large investor base and to change the objectives of existing schemes, we need to take their approval, an expensive affair", he said.

"The income distribution for each sector fund would be made annually, subject to the condition that the distributable income was not less than rupee one per unit, in which eventthe income would be carried over and paid with the next years income", said Daga.