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ENS ECONOMIC BUREAU
MUMBAI, July 28: Unit Trust of India (UTI) is expecting to garner more than Rs 2,000 crore as fresh investments from its popular US-64 which closes on July 31. Top officials say they have received very good response from the small investors due to consistent good performance of the scheme.
In view of the listless stock markets and falling interest rate scenario, a UTI spokesman said the dividend of 20 per cent on the face value of Rs 10 is Rs 2 per unit, which is very attractive. The extra special offer price is Rs 14 and at that level a unit holder effectively gets a return of 14.29 per cent.
Officials say UTI has also reduced the load to 30 paise which is the difference between the sale and repurchase price. This difference has risen to Rs 1.30 for the period between November 1994 to May 1995. Many other MFs have been adopting a no-load policy to attract investors to their debt-oriented schemes. As UTI is a not a debt only fund and is more balanced, this small load is in order, claim officials.
The MUMBAI, July 28: Unit Trust of India (UTI) is expecting to garner more than Rs 2,000 crore as fresh investments from its popular US-64 which closes on July 31. Top officials say they have received very good response from the small investors due to consistent good performance of the scheme.
In view of the listless stock markets and falling interest rate scenario, a UTI spokesman said the dividend of 20 per cent on the face value of Rs 10 is Rs 2 per unit, which is very attractive. The extra special offer price is Rs 14 and at that level a unit holder effectively gets a return of 14.29 per cent.
Officials say UTI has also reduced the load to 30 paise which is the difference between the sale and repurchase price. This difference has risen to Rs 1.30 for the period between November 1994 to May 1995. Many other MFs have been adopting a no-load policy to attract investors to their debt-oriented schemes. As UTI is a not a debt only fund and is more balanced, this small load is in order, claim officials.
Thesmall penalty has been imposed to thwart investors to treat US-64 as a savings bank account, ie, to exit and enter at will. The very existence of UTI is for investors with a long term view and the facility of repurchase is provided only for assisting then when faced with financial emergency and stress. It is not meant for speculators, hence the deterrent, officials say.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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