UTI Mutual Fund, the country's oldest fund house has introduced ‘UTI Fixed Term Income Fund Series V-VIII’, a close-ended income scheme in the market.

The investment objective of the scheme is to generate regular returns by investing in portfolio of fixed income securities normally maturing in line with the maturity period of the plan.

The scheme will invest up to 5-100% in debt including securitized debt and 0-95% in money market instruments. The scheme may invest up to 100% in the securitized debt.

The scheme offers investors retail, institutional and super institutional plan with growth and dividend options. The performance of the scheme will be benchmarked against CRISIL Short Term Bond Fund Index.

The minimum application amount under retail option for dividend sub option is Rs 10,000 and for growth sub option is Rs 5,000 and in multiples of Re 1 thereafter.

However, the minimum application amount under institutional option is Rs 50 lakh and in multiples of Re 1 thereafter.

The scheme will not charge any entry load, as the scheme is close-ended in nature. However the fund will attract an exit load of 3% for redemption on or before 367 days from the date of allotment.

The new fund offer (NFO) price of units is Rs 10 per unit, and it will be open for subscription from October 31, 2008 till November 6, 2008.