40 Uti Schemes Felt Redemption Heat
As many as 40 equity, balanced and debts schemes of the Unit Trust of India (UTI) felt redemption pressure during the six months ending December 31, 2001.
The aggregate decline in the unit capital of these schemes stood at Rs 923 crore.
However, UTI's other 39 schemes have reported an increase of Rs 802 crore in unit capital during December 2001. The unit capital of these scheme increased to Rs 20,119 from Rs 19,318 crore.
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The aggregate unit capital of 40 schemes as on December 31, 2001, stood at Rs 32,285 crore compared with Rs 33,209 crore as at June 30, 2001.
Data on 68 UTI schemes as on December 31, 2001, disclosed by the mutual fund behemoth, reveal that the total value of unit capital has declined by a modest Rs 122 crore.
This redemption, however, does not include the five schemes which were redeemed during July-December 2001.
The large redemption was noticed in the money market fund which saw a drop of 75.3 per cent in unit capital, indicating huge redemption over the period.
The unit capital of money market fund declined to the capital level of Rs 67.2 crore from unit capital of Rs 272.3 crore at the beginning of July 2001.
The outflow in the beleaguered Unit-64 scheme was a marginal at Rs 20 crore. This is presumably because of the ban on sales and repurchase of schemes announced by the UTI in July 2001.
The UTI restricted the sale of the unit initially and latter opened it for the small investors holding up to 3,000 units.
Since the repurchases were offered with a step up assured return scheme, the small investors stayed away from redeeming their holdings in Unit-64 scheme.
Unit Link Insurance Plan had maximum erosion to Rs 218.84 crore in unit capital. The erosion in fund indicates lower inflow (sales) against systematic maturity of earlier investment (redemption) during the period.
The scheme, an open ended balance scheme with systematic investment plan, has a unit capital of Rs 2,936.62 crore as on December 2001.