NEW DELHI, July 10: All the listed schemes of the Unit Trust of India have registered impressive gains on the Mumbai Stock Exchange in the past two months. With the surge in the sensex, the growth funds from UTI are attracting significant buying interest.

In fact, schemes like US '92, Masterplus '91 and UTI 5000 are trading close to their respective 52-week highs. What's more, the volumes of a number of units have nearly doubled after the announcement of results by UTI and a 20 per cent dividend payout by US '64.

Besides the rise in prices, the net asset values of all the schemes have shown considerable improvement since December, 1996. According to fund analysts, with the market turning buoyant, investors are once again turning towards UTI schemes which continue to trade at hefty discounts to their NAVs. ``With the fate of the mutual fund industry linked to the equity market, no wonder investors are turning up to buy mutual fund units. UTI being a premier mutual fund institution, investors are evincing interest in its schemes, '' says a fund analyst. Sources also point out that a dividend of 20 per cent in US '64 has assured investors of UTI's capability to pay handsome dividends even in case of a slump in the market as witnessed in 1996-97.

The net asset values of all listed funds have also looked up, thanks to their bluechip portfolio. With the sustained bullish sentiment confined to the A group, NAVs of all funds have looked up. This, say market sources, is precisely the reason why UTI schemes are attracting investment. Putting money in just one UTI scheme can give investors a well-diversified portfolio in A group stocks.

A major gainer in the current rally is Masterplus '91, which has moved from Rs 16.40 on June 30 to Rs 17.35 on July 9. The scheme's 53-week high/low is Rs 18/11. The volumes have jumped from 48,100 on June 30 to 1.59 lakh on July 1. The NAV has also moved from Rs 19.80 on December 25, 1996 to Rs 25.86 as on July 2, 1997.

Another performer from the UTI stable has been US '92 where volumes have doubled while the price has moved from Rs 15.10 on June 30 to Rs 15.75 on July 9. Volumes, which were as low as 5000 units on June 30, trebled to 15,100 on July 1 and 40,300 on July 4. The fund's NAV has also improved from Rs 13.9 on December, 1996 to Rs 18.55 on July 2.

Other gainers include Grandmaster '93, Mastergrowth and UGS 5000. In the case of UGS 5000, the NAV has gone up from Rs 15.25 in December, 1996 to Rs 19.2 on July 2, 1997. The price of the units has moved marginally from Rs 16 on June 30 to Rs 16.5 as on July 9.

Mastershare up on dividend hopes?

Buoyed by a 20 per cent dividend in US '64, investors are lapping up Mastershare, which pays annual dividends. Mastershare has moved from Rs 13 on June 25 to Rs 14.35 on July 9.

Volumes have also shot up from 67,000 units on June 25 to 1.15 lakh units on July 9. The fund's NAV has shot up from Rs 19.63 on December, 1996 to Rs 24.86 on July 2. For fiscal 1996, Mastershare had paid a dividend of 16 per cent.

Analysts expect UTI to at least maintain the dividend paid in the previous fiscal while some even anticipate a higher dividend.The dividend for Mastershare is due for announcement and the book closure is expected in September, as in fiscal 1995-96. At the current price of Rs 14.35 100 units will cost Rs 1435 yielding a dividend of Rs 160 (assuming the 16 per cent dividend is maintained) or a return of 11.14 per cent in less than two months. However, with every rise in the price of the units, the yield falls.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.