Tax-saving funds will sport a different profile as the notification by the Finance Ministry take effect. The government has specified that equity-linked savings schemes will have to be close-end funds and have a tenure of 10 years at the end of which they will have to be wound up.

If 90 per cent or more of the units are repurchased before the ten-year period, the fund will have to be wound up. Mutual funds will be required to announce a repurchase price one year after the allotment for the first time and at six-monthly intervals subsequently.

UTI Mutual has declared a dividend of 50 per cent for UTI Master Plus Unit Scheme. The record date for this purpose is November 28. All unit-holders registered under the dividend option of UTI Master Plus Unit Scheme, as on November 28 will be eligible for this dividend.

Franklin Templeton Investments is to announce a tax-free dividend for Franklin India Prima Plus. Investors in the fund as of November 9 will be eligible for the dividend. Any purchases on or before this date are eligible for the dividend. The fund reopened for fresh purchases and redemptions on November 11.

Tata Mutual plans to declare a dividend for Tata Opportunities Fund. The record date will be November 29. The to-be-declared dividend will be tenth since the launch of the fund. The last dividend payment was 10 per cent in May this year.

SBI Mutual has launched MMIP Floater Fund, which will invest in floating rate instruments and seek to cushion against the risk of interest rate changes. The fund is open for subscription in the initial offer period till November 30. The minimum investment amount is Rs 10,000.

Kotak Mahindra Mutual and Indian Overseas Bank have entered into an arrangement under which the latter will distribute the fund house's products through its network of about 1,500 branches.

(This article was published in the Business Line print edition dated November 20, 2005)
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