Fund Update
FE NEWS SERVICE
Index Equity Fund declares NAVThe Unit trust of India has declared the net asset value of Index Equity Fund. The NAV of IEF stood at Rs 8.71 as on December 24. Index Equity Fund was launched in June this year. The closed-end pure equity fund aims to outperform the Nifty and the BSE Sensex. The fund only invests in Nifty and Sensex stocks. UTI IEF raised around Rs 31 crore. Since its launch, while the sensex has fallen by 11.87 per cent, Nifty has fallen by 9.27 per cent. In contrast, the fund has depreciated by 22.9 per cent. Closed-end growth scheme from UTI UTI plans to launch a closed-end pure growth scheme in February. This will be the first equity fund after Index Equity Fund. UTI has been unable to raise substantial corpus in its equity funds over the past two years. In 1996, it could only raise Rs 23 crore in its EOF scheme while in 1997, it raised Rs 31 crore in IEF. The net inflows into UGS 2000 during the rights have also not been encouraging. UTI has witnessed major outflows
in Mastergain '92 since it opened for repurchase three years back. UTI also plans to launch its MIP '98 in January. STCI plans gilt fund The Securities Trading Corporation of India (STCI) is planning to set up an asset management company for floating a `gilt fund.' The trading house is considering raising funds from the public and investing these in government securities or gilts as they are popularly called. UTI too is believed to be planning the launch of such a fund as it is perceived that there would be a considerable amount of investor interest generated in these instruments once trading is brought to retail investors. Dhanvarsha 11 opens on Jan 7 LIC Mutual Fund will launch its regular income scheme, Dhanvarsha 11, on January 7 and closes for subscription on February 20, 1998. The five-year closed-end scheme will open for repurchase after one year at NAV based price. The fund plans to `assure' returns for the entire tenure of the scheme.
Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.
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