Fund Update

The UTI has also maintained bonus payout at the rate of 16.5 per cent in its ULIP scheme. The sale price of ULIP for July is Rs 12.80 per unit and the repurchase price is Rs 12.40 per unit. UTI has also announced the redemption of IISFUS ’93. The fund has given an annualised return of 16.64 per cent during its tenure. UTI has also announced thefinal redemption price of Mastergain ’91. The fund has been redeemed in four instalments over the past four years. The final redemption price is Rs 249.

LIC MF to redeem Dhanvarsha 5

LIC Mutual Fund has announced the redemption of Dhanavarsha 5 scheme on July 31, 1997. With the NAV of the monthly income option at Rs 6.16, LIC is pumping in money to honour the commitment made by Jeevan Bima Sahayog AMC to redeem at par. Besides, investors are being offered a role-over at par into Dhanavarsha 13 which is being launched on July 20, 1997. With a five year tenure, Dhanavarsha 13 offers three investment options – monthly income, yearly income and income cumulation. The monthly income option offers an assured return of 12.25 per cent per annum payable monthly for the first year. The other two option promise a growth of 13 per cent during the first year. The minimum investment is Rs 10,000 in the income option and Rs 5000 in the cumulative option. The fund will offer repurchase at NAV one year from dateof allotment.

Prudential Liquid Plan opened for sale and repurchase

Prudential ICICI AMC has opened its Liquid scheme for subscription and repurchase. The liquid plan was one of the three open end mutual fund schemes launched by the AMC last month. The liquid plan collected Rs 40 crore during its initial period. The liquid plan seeks to generate reasonable return, while providing high level of liquidity through investments primarily in money market instruments. The fund will normally have 80 per cent exposure in money market and balance in debt securities. Going by the prevailing interest rates and the performance of competing products, the fund should provide a return of 9-10 per cent over the next one year. The latest NAV of the scheme is Rs 10.0281. Presently, there are liquid schemes from Templeton, Birla, Alliance, JM and Kothari. Besides, there are three money market funds available in this segment.

UTI to launch MIP III on July 6

UTI will be launching MIP III on July 6, 1998. MIP,an assured income scheme, seeks to provide regular income and capital appreciation by investing predominately in debt. The fund will be available in two flavours, monthly income, annual income and income cumulation. Though the assured income has not been decided as yet, it likely to be at least 12.5 per cent under the monthly income plan as offered under MIP II. The minimum investment is Rs 10000 in the income plan and Rs 5000 in the cumulative plan.