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India's largest mutual fund to invest in dot-com firms

India's largest mutual fund operator is to launch a new fund concentrating on Internet start-ups.

The Unit Trust of India, or UTI, is preparing for the launch of a new fund specifically aimed at Internet companies, UTI executive director Basudeb Sen said.

Sen, however, declined to disclose details of the new fund's composition or its launch date.

UTI is India's largest mutual fund, managing more than Rs 727 billion and over 45 million investor accounts.

The 36-year-old organisation already has a software fund, which invests around Rs 2.6 billion in leading Indian information technology companies.

UTI chief Sen said he intended the new dot-com fund would repeat the success of the software fund, which last year posted growth of 192 per cent, compared to the 28.2-per cent growth of the Bombay Stock Exchange's Sensitive Index, the Sensex.

"The portfolio of the dot-com fund will be different from the software fund as UTI will be investing in start-ups in the booming Internet sector," Sen said.

"It will be a complex exercise and we will be taking all precautions to choose the right companies," he said.

Business