UTI Mutual Fund will hit the capital markets with initial public offering on Tuesday for its sixth thematic funds including auto, banking and public sector undertakings.

The subscription for IPO would remain open till March 25 and the scheme will re-open for sales and repurchase not later than 30 days from the closure of the initial offer, UTI MF said.

The funds in the schemes are -- Large Cap Fund, Mid Cap Fund, Basic Industries Fund, Auto Sector Fund, Banking Sector Fund and PSU Fund.

The sale of units under each scheme would be at face value of Rs 10 during the IPO period. On re-opening of the scheme, sale of units would be at 102 per cent of net asset value.

The primary objective of the schemes was capital appreciation. However, these funds may also distribute income to the unitholders.

UTI MF president Madhav Kumar said MF has already begun the campaign for approaching prospective investors.

"We expect most of the response close to the end of subscription period since these are new schemes and investors will take time to understand them," he said.

The Large Cap Fund would have a portfolio of top 50 companies in terms of market capitalisation while the corpus of Mid Cap Fund would be primarily invested in mid cap stocks.