UTI MF targets small investors, villages for big leap

Mumbai: Mutual funds major, UTI MF, plans a massive rural thrust and to tap small investors by cashing in on its extensive network to take on competitors and boosting its business.

"Our strategy is to tap Tier II and Tier III towns and small villages where we believe there is a tremendous potential for mutual funds to perform well. Our strategies are being geared up for this thrust," said, UTI MF Chairman and Managing Director U K Sinha.

The mutual funds industry is yet to mature in terms of reaching out to small investors in the smaller towns and villages. UTI MF plans to do just this, which, it hopes, will not only augment its customer base but also help enhance its business.

"It will be a long battle, but we have the network to win this battle," he said.

UTI MF has, in recent times, slipped in rankings to third place behind Reliance MF and Prudential ICICI, both of whose assets under management (AUM) are higher than that of UTI MF.

UTI MF's AUM as at end-April stood at Rs 36,000 crore putting it in third place behind the other leading private players.