UTI Mutual Fund¸ the country's oldest fund, has launched ‘UTI Fixed Income Interval Fund Series II Quarterly Interval Plan VII’ in the Indian market.

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

The scheme will have investment up to 10-100% in money market instruments and offers two plans i.e. retail and institutional plan along with growth and dividend options.

The minimum investment amount under retail plan will be Rs 10, 000 and in multiples of Re 1 thereafter. For the institutional plan, the minimum application amount is Rs 1 crore and in multiples of Re. 1 thereafter.

The positive feature regarding this fund is that it will not charge any entry load on the scheme. However the scheme may charge 1% as an exit load for the redemptions done on any time other than specified transaction period, given in the brochure.

The New Fund Offer (NFO) is open for subscription from September 26, 2008 till October 6, 2008.