MUMBAI, Aug 7: The Unit Trust of India is passing up the first opportunity in recent times, of trying to retain funds with it. In August and September this year, two schemes with redemptions collectively valued at around Rs 350-400 crore will be allowed to expire without giving investors a rollover facility.

In the past 10 months, whenever redemptions of previously launched closed end schemes have come up, the Trust has skillfully floated a monthly income plan to coincide with the maturity of the scheme.

Nearly four schemes of the Growing Monthly Income Scheme series had been scheduled for redemption in the period November 1996 to June 1997. Each time, there has been a MIP to mop up the monies from these schemes by way of rollover. The record has been that almost 50 per cent of the investors have opted for rollovers.

Although the timing of the forthcoming MIP (IV) has not been fixed, partly because Sebi has yet to give it the green sigmal, UTI officials confirmed that two schemes will not be rolled over. The two schemes scheduled for redemption are Deferred Income Unit Scheme 1990 (seven year option) and Deferred Income Unit Scheme 1992. The reason given by officials is that the two schemes are not structured in the regular income scheme fashion as the monthly income schemes are and so investors who had invested in the deferred scheme with a different objective may not be inclined to rollover their investments into such a scheme. If that is the case, UTI might be floating the MIP (IV) only when the next GMIS scheme, scheduled for redemption in October comes up. Unless, it is willing to let the MIP mop up monies on its own. The MIP (III) 1997 which closed on August 3 with a 13 per cent assured return has collected only Rs 450 crore from fresh sales and Rs 250 crore from rollover of GMIS. At the most only about Rs 100 crore is expected to be added to the tally when the final figures come in.

At a total of Rs 800 crore, this will be much lower than the Rs 1200 and Rs 1300 crore collected by MIP(I) and MIP (II) earlier this year.

UTI officials observed that this might be because the attentions of both, agents and investors were directed at the special July sales drive for the US-64 scheme.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.