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UTI MIP (V) mobilisation surpasses Rs 500cr target
FE Investor Bureau
NEW DELHI, January 2: The Unit Trust of India's last monthly income scheme of calendar 1997, MIP (V) has managed to cross the Rs 400 crore mark. Since the figures are still being collated, UTI officials exuded confidence that the figure will cross the Rs 500 crore mark.Earlier UTI had set an internal target of Rs 500 crore for this assured return scheme. The scheme closed for subscription on December 31, 1997 and offered an assured return of 11.75 per cent. ``Figures are still being worked out and will cross the internal target of Rs 500 crore,'' said a UTI official. According to market sources, the response to MIP (V) has come mainly from the retail segment while provident funds have stayed away since the scheme offered less than 12 per cent return. Officials in UTI said that the first monthly scheme in the current calendar is likely to be launched in February. Although the coupon is yet to be fixed, sources indicated that it is likely to be maintained around the same level as in case of MIP (V),
considering that the medium to long-term interest rates are still low. ``The board is yet to meet to decide on MIP '98 but the assured return of 11.75 per cent in the case of MIP (V) was good in the current interest rate scenario,'' pointed out an official. During calendar 1997, UTI launched five MIPs in all. MIP (I), which offered an assured return of 14 per cent, garnered the highest amount of Rs 1159 crore. MIP (II), floated just after the slack season credit policy in April, mopped up close to Rs 1150 crore.With investors scouting for safer investor opportunities post-CRB, MIP (III) mobilised close to Rs 800 crore even though the assured return was brought down, compared to the earlier two, by 100 basis points to 13 per cent. The fourth monthly income scheme, which attracted some money from rollover of UTI funds, managed a collection figure of Rs 900 crore even though the return offered was only 12.5 per cent. Thus, during 1997, the combined mobilisation was a staggering Rs 4500 crore (including
that in MIP (V)). In contrast, the four MIPs in 1996 saw a total collection of mere Rs 1800 crore. This is attributed to the then booming fixed deposit market, which lured investors with astronomical interest rates. In fact, two MIPs in 1996, which offered an assured return of 15 per cent for the first year, managed a combined subscription of only Rs 74.5 crore.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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