Kolkata, Jul 13 (IANS): UTI Mutual Fund (UTI-MF) will target one crore investors under its micro pension initiative in the next three years, a top company official said Wednesday.

"The micro pension initiative is targeted chiefly towards the unorganised sector which lacks basic social security," UTI-MF group president Jaideep Bhattacharya told reporters after an agreement with Srei Sahaj e-Village Ltd, which will provide distribution network for the scheme.

"We are targeting an investor base of one crore in the next three years," he added.

The scheme will be launched in Assam, Bihar, Orissa, Tamil Nadu, Uttar Pradesh and West Bengal. Later on, it will be extended across the country.

Bhattacharya said the company will target one lakh investors in the first year in the six states.

"It's a new project, targeting a new space. So, we have empowered ourselves with adequate knowledge before we aim for higher targets. After the initial year, we will target about one crore investors in the next three years."

On the need for social security schemes, he said: "According to the latest census, 7.7 crore people in India are 60 or more years old. With the increase in the life expectancy rate, people are going to live at least 20 years more after retirement."

"Therefore, they need to invest in pension schemes to secure their old age," he added.

The pension initiative is an open-end tax saving-cum-pension fund, aimed primarily to provide periodical income. The scheme invests minimum 60 percent and maximum 100 percent in debt and balance in equity.