Talking to The Financial Express on Tuesday, UTI executive director BG Daga said: "Till date, we have information about the mobilisation of Rs 570 crore. But the information from various centres are yet to come in. After the completion of the entire process, the fund mobilisation should be five to ten per cent higher."

Earlier this year also, the country's largest mutual funds with assets of around Rs 65,000 crore under various schemes, had mopped up similar amounts under two MIPs - first in January and then in May. Daga said the amount raised through the MIP 2000 III series was in line with the targets of UTI. Out of the total funds mobilised from the MIP, 20 per cent would be invested in the equity markets and the rest would be used in the debt market. At a time when the institutional investors, especially foreign ones, were abstaining from the stock markets, the infusion of 20 per cent of the total amount would provide some respite to the markets.

MIP (III) is a five-year closed-ended scheme with three options. Under the monthly income plan the unitholders get 9.5 per cent assured return payable monthly up to October 31, 2001. In the annual plan and cumulative plan there is an assured return of 10.2 per cent payable annually up to October 31, 2001. The rate of income distribution for subsequent periods would be announced in advance in the month of March each year. For the unit holders there is also a capital guarantee at the time of maturity in October 2005. The protection of capital at maturity is guaranteed by the Development Reserve Fund of UTI.