A boutique fund manager in Melbourne is expecting to promote above average returns from investing in a pool of term deposits from banks, through a collective investment option that the promoter claims is unusual in the market.Mutual Limited does not have any yield history to point to since the fund only opens in two weeks, but it says that it has managed a term deposit fund for Austock Life since August 2010 that is currently returning in excess of six per cent per annum before fees.Mutual's launch document notes that the BT Premium Cash Fund, the highest returning cash management trust, is paying 4.82 per cent at present.For the time being the Mutual Term Deposits Fund will look to invest in deposits with any bank, building society or credit union as long as it's covered by the Australian government guarantee.Terms for the government's continuation of that guarantee are still to be announced and Mutual principal Brian Buckley said the fund would focus on deposits with the "big six" banks if that did not continue in some form.Investors need to provide seven days notice of redemption, though the fund may take 30 days to make a payment "where it considers it is in unit holders' best interests to do so, or in highly unusual market circumstances."Despite its name, Mutual Ltd is not a mutual, though it has to date marketed its services to not for profit entities.