Bangalore, June 7: Unit Trust of India (UTI) has set a collection target of Rs 150 crore for its `UTI Index Equity Fund', chief general manager BM Daga said. The fund will invest only in the NSE-50/BSE-30 scrips and is a seven year close-ended pure growth scheme with listing on both NSE and BSE.

Addressing newspersons here on Saturday, Daga said that if after one year the NAV is below par, the original allottees will have the option to repurchase at par upto 5,000 units per investor. This option can be exercised only by the original allottee one year from the date of allotment over a period of one month. This option can be exercised by each investor only once. Capital protection to the investor will be provided through UTI's development reserve fund (DRF) which has a corpus of over Rs 400 crore and is likely to increase after the financial closure for 1996-97 later this month, Daga said. The fund opened on May 12 and will close on June 25, 1997.

He further said that the appreciation in the fund will be treated as a long term capital gain and enjoy indexation benefits under Section 48 and Section 80 L benefits.

The fund also offers continuous repurchase after three years from the date of allotment at NAV based repurchase prices.

Investors desiring to invest their capital gains for seven years can avail of tax exemption under Section 54 EA. The minimum investment limit for the fund is Rs 2,000 with no maximum limit.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.