Us-64 Redemptions Top Sales In January

Continuing an earlier trend, more people dumped units of the Unit Trust of India's (UTI) flagship US-64 scheme than those who bought it in January.

In January 2002, the gap between sales and repurchases was around Rs 180 crore. UTI's total repurchases stood at Rs 230.71 crore and fresh sales at Rs 50.98 crore.

UTI saw a total outflow of around Rs 450 crore in the five months between August and December 2001, representing an average monthly repurchase of Rs 90 crore. Since there were no fresh sales in the period, the US-64 scheme had only outflows in the period.

Since January 1, 2001, UTI has reinstated fresh sales of US-64 units, at net asset value (NAV)-linked prices. Repurchases under the special window at the administered price of Rs 10.50 stood at Rs 217.98 crore and repurchases based on NAV stood at Rs 12.75 crore.

UTI had banned fresh sales and repurchase of units in July 2001, but allowed limited repurchases to retail investors upto 3,000 units.

UTI recommenced fresh sales of US-64 units from January based on the NAV. It also increased the numbers of units that could be redeemed under the special window at the administered price to 5,000 units from 2,000 units. From February 1, the repurchase price under the special window will be raised to Rs 10.60. Meanwhile, US-64's NAV stood at Rs 5.98 on January 30.