UTI to close MIP-99(II) and MIP-2000 from Aug 1

The administrator of the specified undertaking of the Unit Trust of India (UTI) today announced the foreclosure of two of its Monthly Income Plans, MIP-99(II) and MIP-2000 with effect from August 1, 2004.

Falling interest rates have led to a decline in the income generated under MIP-99(II) and MIP-2000 which has forced the two schemes to declare lower income distribution of 3.5 per cent per annum for the four month period ending July 31, 2004, a UTI release said.

"Keeping in view the interest of the unitholders, it has been decided to foreclose these two plans and return the capital to the investors earlier than the original maturity dates. MIP 99(II) matures on October 31, 2004 and MIP-2000 matures on March 31, 2005," the release said.

The unit holders of MIP-99 and MIP 2000 investing under monthly, annual and cumulative options plan shall receive Rs 10 per unit plus accrued income for the period between April 2004 and July 2004.

Pursuant to the Unit Trust of India (Transfer and Repeal) Act, 2002, Unit Trust of India was bifurcated from February 1, 2003, into two distinct entities "" The Specified Undertaking of the Unit Trust of India (SUUTI) and UTI Mutual Fund. All assured return schemes have been transferred and vested in the SUUTI.