The fund promoted by UTI is expected to generate the money by placing units of the cutting-edge technology fund for the private sector. These units are not meant for public because the amount of expected investment is very high.
The Unit Trust of India-Technology Venture Unit Scheme is a close-ended fund and the time period is 10 years. The minimum application size that is determined by Unit Trust of India is Rs.5 crore. The investors in this fund are large-scale companies or corporations and some of the government institutions. Some of these investors are Life Insurance Corporation of India, Bank of Baroda, Andhra Bank, General Insurance corporation, Technology Development Board and so on.
Unit Trust of India-Technology Venture Unit Scheme has been designed to invest in the technology stakes with potential high growth rate. At the same time, the risks involved in these investments are also very high. Because of this high risk factor, this fund is not meant for short-term investors.
The prospective investment sectors of the Unit Trust of India-Technology Venture Unit Scheme are the companies that are in their start-up phase. The preferred companies are those that are from the information technology sector. At the same time, the fund is also meant for the areas such as telecommunications, healthcare, entertainment, biotechnology, media pharmaceuticals and many more.
The Unit Trust of India-Technology Venture Unit Scheme is also unique because this is the first time that Unit Trust of India is managing any fund outside Bangalore on its own. The concept of Venture Capital in India is implemented for the first time by Unit Trust of India in 1989. The venture capital schemes that are implemented by UTI previously are Vecaus-I, Vecaus-II and Vecaus-III. These funds generated Rs. 225 crores and the money is managed by TDICI.
Unit Trust of India-India Technology Venture Unit Scheme
Unit Trust of India
13, Sir Vithaldas Thackersey Marg
New Marine Lines, Post Box No. 11064
Mumbai 400 020
Last Updated on : 27th June 2013