UTI Mutual Fund chairman U. K. Sinha (right) and executive director D.S.R. Murthy in Mumbai on Tuesday. (PTI)

Mumbai, Feb. 21: UTI Mutual Fund is planning a bouquet of products, including a gold exchange traded fund and a derivatives fund, for investors.

“We are continuously evaluating various options to offer investors innovative and beneficial investment products,” said U.K. Sinha, chairman and managing director of UTI Mutual Fund.

UTI Mutual Fund has been the first to approach the Securities and Exchange Board of India for its approval to launch a gold exchange traded fund, said executive director D.S.R. Murthy. “We are now waiting for the detailed guidelines on the product, which should come about in a month,” he added.

The mutual fund house has recently launched UTI Contra Fund, after closing the UTI Leadership Equity Fund with a collection of Rs 2,080 crore.

The fund will invest 80 per cent of its portfolio in stocks that are currently out of favour due to short-term negative factors without any significant shift in the basic fundamentals of the company.

“We have the option to keep up to 20 per cent of our assets in cash, so that we can cash in on any short-term contrarian opportunity,” said A.K. Sridhar, chief investment officer of UTI Mutual Fund.

The minimum investment in the scheme is Rs 5,000 and subscription will remain open till March 22. The scheme carries an entry load of 2.25 per cent for investments below Rs 2 crore, while there is no exit load. Systematic investment plan is also available during the offer period.

“While some of our schemes are investing in derivatives instrument, we are yet to launch a full-fledged derivatives fund. We are weighing the options,” he added.

Talking about UTI’s global funds, Murthy said the guidelines on overseas investments by mutual funds are still awaiting Reserve Bank’s approval. The apex bank will have to make some necessary changes in the mandate.