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Interim dividend from KP Pension Plan

Our Market Bureau

Calcutta, Dec 8: Kothari Pioneer Pension Plan, the first pension scheme in the private sector, has declared an interim dividend of Rs 1.20 for 1998-99. All investors under the dividend option as on December 14, 1998, are eligible for the payout. With an average annualised return of 15.90 per cent as on November 30, 1998 under the dividend option, it has been able to maintain yields despite "prevailing low rates from similar high quality fixed income assets", says Vivek Reddy, chief executive of Kothari Pioneer AMC Ltd.

On the scheme's investment strategy, the chief investment officer, Ravi Mehrotra, says investments have been made only in high quality bonds and debentures to ensure safety coupled with steady returns. Designed to help investors save for their retirement needs, the Pension Plan was launched in March 1997. Investors are entitled to a 20 per cent tax rebate for investments up to Rs 60,000 each year under section 88(2)(xiiic) of the Income Tax Act, 1961. The fund manager of the scheme expects asurge in inflows in the next couple of months as taxpayers plan their taxes to beat the March deadline.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.

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