Search the Internet          Tips  Sites: Finance, Investment

UTI plans new scheme after 2½ years

BS Markets Bureau in Mumbai

The Unit Trust of India after a gap of about two-and-a-half years is introducing a new scheme. The trust is launching UTI Regular Income Scheme, its first open-ended debt-oriented scheme with no assured returns.

According to senior officials, the scheme aims at distributing returns periodically and is open to resident individuals, institutions, as well as expats and overseas corporate bodies.

The trust will sell units at face value of Rs 10 per unit and the minimum investment is Rs 10,000 with subsequent investment in multiples of Rs 1,000. The scheme will offer two options - growth and income.

Senior UTI officials said: "The scheme is aimed to retaining some the unit holders of the Month Income Plan 98 (III) which has matured on August 30. Also, it is expected to attract investors who would be interested in a regular income plan."

The officials said that there is a need for such products as other private funds are offering such products.

UTI is launching at least six new schemes over the next few months and these include a variable income plan, a liquid plan and a fixed income plan. It had filed offer documents with the Securities and Exchange Board of India for variable investment scheme.

The new schemes are necessary for the trust to mop up funds and to sustain the funds inflows.

Market regulator Sebi had spiked new schemes by the trust and sought clarifications it. There was also lack of clarity on the sponsorship issue. With the government announcing the bailout package last week, these issues are now put to rest.

Powered by

ALSO READ:
The UTI Crisis
More Money Headlines