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S. Vaidya Nathan

THE UTI has decided to leave State government securities out of the investment ambit of its UTI G-Sec Fund. The fund's investment objective has been altered to provide for investments in Central Government securities, treasury bills, call money and repos.

The earlier leeway to invest in State government securities has been removed. This will make G-Sec a virtually credit risk-free gilt fund. The chances of a default by the Central Government on its interest and repayment obligations are almost nil.

Open-end MVUP: Master Value Unit Plan, a close-end equity scheme of the Unit Trust of India (UTI), became open-ended from February 17, 2002. As this constitutes a change in its fundamental attribute, investors have been given an exit option. Existing investors can purchase fresh units in the scheme or wholly/partially use the repurchase facility at NAV to exit. This facility will be available between January 22 and February 12.

UTI RIS dividend: The UTI has announced a dividend of 0.65 per cent (Rs 0.65 per unit on a face value of Rs 10 per unit) for the Regular Income Scheme. Investors as of January 24 will be eligible for the dividend. The fund was launched in September 2002 and this is the first dividend payment. The fund has an asset base of Rs 218 crore.

Lower UTI load: The UTI has cut the exit load on the Equity Tax Saving Plan (ETSP) from 2 per cent of the NAV to 1 per cent. This is an open-end tax savings scheme.

PNB Debt bonus: PNB Mutual Fund has announced bonus units in the ratio of 1:10 for the Income Option of PNB Debt Fund. Investors as of January 24, 2003 will be eligible for the dividend.

K-Bond bonus: January 9, 2003 was the record date for allotment of bonus units under the Bonus Option of the Wholesale Plan of Kotak Mahindra Mutual Fund's K-Bond.

SBI bonus option: SBI Mutual Fund has introduced a Bonus Option in the Magnum Income Fund and has announced a bonus in the ratio of 1:2 for the Growth Plan. Investors who want to switch to the Bonus Option are entitled to one unit for every two units held in the Growth Plan. The record date is January 20.

Birla IT dividend: Birla SunLife had fixed the record date for dividend as January 14, 2003. The fund has introduced an exit load of 2 per cent for investments in the Dividend Plan that is pulled out within 60 days.

This would apply to investments made between January 10-14, 2003. The entry load of 1 per cent would be continued. The 2 per cent load would also apply to switch-outs/ lateral outs to the Growth Plan of the Birla IT Fund.

Birla Bond Index: Birla SunLife Mutual Fund plans to launch a new income scheme — Birla Bond Index Fund, which will track the CRISIL Composite Bond Index. The portfolio will be short-term instruments, government securities, and AAA and AA rated debt papers.

The fund will try to keep the portfolio in line with the CRISIL Bond Index. Birla SunLife Mutual Fund has also planned to launch a dividend yield focused fund. This fund will seek to invest in companies offering good dividend yields. It will be a theme that has not been explored by funds so far.

First India load: First India Mutual Fund has altered the load structure for the First India Short Term Plan (a part of First India Income Fund). There will now be no entry load.

There will be an exit load of 0.25 per cent if redemption is done within 7 days of investment. Beyond this period, there is no exit load. The changes are effective December 23.

US-64 prices: The repurchase price for unit holdings of up to 5,000 units (enhanced from 3,000 units) is Rs 11.60 per unit in December under the Special Liquidity Package. The package was offered from August 2001 at Rs 10 per unit and is due to end in May 2003 at Rs 12 per unit.

The price for November was Rs 11.50 per unit. For holdings in excess of 50,00 units, a repurchase facility linked to the NAV is available from January 2, 2001.

For such holdings, an assured repurchase price of Rs 10 per unit or NAV, whichever is higher, is available on May 31, 2003, if the units are held till then.

The redemption will be at NAV-based prices if it carried out before May 31, 2003.

For less than 5,000 units, the assured repurchase price for May 2003 is Rs 12 per unit. These special repurchase prices will also be available beyond May 2003.

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