Both the schemes are of five year duration after which the instruments will be redeemed. The investors in UTI's MIP-98(IV) get the option to receive interest payments monthly or annually, with returns of 12.50 per cent and 13.25 per cent per annum, respectively. The yields to the investors, irrespective of choice of payment, work out to 13.25 per cent per annum.

On the other hand, the investors in ICICI's Regular Income Bond has three options to receive interest payment - monthly, half-yearly or annually. The interest rates offered in the scheme are13 per cent, 13.25 per cent and 13.75 per cent. However, the yields to the investors in case of half-yearly payments at 13.7 per cent is lower than the 13.75 per cent received in case of yearly payments which again in turn is lower than the 13.8 per cent received from monthly payment.

The previous MIP issue from UTI was a big success which had mopped up Rs 1400 crore. However, initial estimates for the current issue from UTI show that the collections so far have been Rs 500 crore. Given the current pessimistic scenario in the equity market, conservative investors may not find it comfortable to invest in MIP-98 (IV) since it can invest upto 30 per cent in the equity market.

Under the MIP, UTI guarantees the protection of the capital invested on maturity. However, in the case the investor were to need the money before maturity, UTI would repurchase the units after 3 years and the repurchase prices would be linked to the prevailing net asset value of the scheme. In case an investor wants to redeem his units,he may suffer capital appreciation if the scheme does not perform well.

ICICI's current Safety Bond series comprises of four options - Encash Bond, Tax Shield Bond, Regular Income Bond and Money Multiplier Bond. All the bond schemes have highest safety ratings from the three rating agencies, ICRA, Crisil and CARE. ICICI is permitted under the umbrella prospectus approved by Sebi to mobilise up to Rs 3000 crore with a greenshoe option of Rs 3000 crore in tranches over a 365-year period. The current issue aims at mobilising Rs 400 crore with the right to retain another Rs 400 crore.The Encash Bonds from ICICI is finding favour from investors which offers liquidity plus growing interest. The issue price is Rs 5,000 with redemption period of seven years. The rate of interest in the first year is 11 per cent and goes upto 18 per cent in the seventh year.

While the MIP-98(IV) will close on November 11, the ICICI issue will close for subscription on November 9.