• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

THE rate of income distribution of the Monthly Income Plans of the Unit Trust of India (UTI) have been pegged at levels lower than what can be obtained even on a savings bank deposit.

The MIPs are now under the charge of the Administrator of the Specified Undertaking of the UTI.

The income distribution announced are: 3 per cent per annum for MIP 1999 (II) and MIP 2000, 4 per cent per annum for MIP 2000 (II) and MIP 2000 (III) and 5 per cent per annum for MIP 2001.

For these schemes, the assured returns are fixed on a year-to-year basis and announced at the beginning of the fiscal.

The dividends announced apply for the period between April 1, 2003 to March 31, 2004.

The first monthly distribution is due on May 1, 2003. For the MIP 1998 (II), MIP 1998 (III), MIP 1998 (IV), MIP 1998 (V) and MIP 1999, there is no change in the rate of income distribution.

These are assured return schemes for which UTI had indicated the rate of return for the entire tenure of the scheme.

Birla Bond Index: Birla SunLife AMC is to launch a new bond fund called Birla Bond Index Fund. It would track the CRISIL Bond Fund Index.

This will cover call market instruments, commercial papers, government securities, AAA and AA rated corporate debt paper.

The fund may invest some of its corpus outside the index without compromising on risk attributes. The initial offering period is between April 22, 2003 and May 02, 2003. The minimum investment amount is Rs 25,000.

UTI Master Value dividend: UTI Mutual Fund has announced a dividend of 10 per cent for the UTI Master Value Fund. This plan was earlier known as Master Value Unit Plan 1998.

The record date for the purpose of dividend is April 21, 2003. The scheme had become open ended from February 17, 2003.

The fund has turned in annual returns of 11.4 per cent since its launch in June 1998 even as he markets have gained 6.5 per cent.

UTI CRTS dividend: UTI Mutual Fund has announced a dividend of 2 per cent on the Unit Scheme for Charitable and Religious Trusts and Registered Societies (CRTS).

The record date for the dividend is April 9, 2003. The fund has an asset base of Rs 377 crore.

Chola Plans: Cholamandalam Mutual Fund has introduced institutional plans in Chola Triple Ace, Chola Freedom Income — Short Term Fund and Chola Liquid Fund.

The plans have been launched from April 10, 2003. The portfolios of these plans are similar to that of the respective scheme. The minimum investment has been fixed at Rs 1 crore.

Birla MF loads: Birla SunLife AMC has announced entry load of 1 per cent for Birla Advantage Fund, Birla Dividend Yield Plus, Birla IT Fund, Birla MNC Fund, Birla Equity Plan, Birla Mid-Cap Fund and Birla Balance.

For Birla Index Fund, an entry load of 0.5 per cent has been fixed. There are no exit loads. The revised load structure is applicable from April 10 2003.

Alliance dividends: Alliance Capital Mutual Fund has announced a dividend of 1 per cent for the quarterly income option and 0.7 per cent of the monthly dividend option of Alliance Monthly Income Plan. The dividends are for March 2003.

US-64 prices: The repurchase price for unit holdings of up to 5,000 units (enhanced from 3,000 units) is Rs 11.80 per unit in March 2003 under the Special Liquidity Package.

The package was offered from August 2001 at Rs 10 per unit and is due to end in May 2003 at Rs 12 per unit.

The price for December was Rs 11.50 per unit. For holdings in excess of 5,000 units, a repurchase facility linked to the NAV is available from January 2, 2001.

For such holdings, an assured repurchase price of Rs 10 per unit or NAV, whichever is higher, is available on May 31, 2003, if the units are held till then.

If redeemed earlier, the redemption will be at NAV-based prices if it carried out before May 31, 2003. For less than 5,000 units, the assured repurchase price for May 2003 is Rs 12 per unit.

These special repurchase prices will also be available beyond May 2003.

Investors have the option of receiving government of India-backed bonds with a coupon of 6.75 per cent per annum and a tenure of five years.

BL Research Bureau

Article E-Mail :: Comment :: Syndication

Stories in this Section
Sai Info: Back out

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line