Unit Trust Mmf Nets Rs 26.56cr In Two Days

The UTI Money Market Mutual Fund Scheme has collected Rs 26.56 crore in the first two days since it opened for subscription on April 23. This is UTIs maiden foray into the money market mutual fund sector. A top Unit Trust official said, Wednesdays (the date of launch) collection was Rs 6.31 crore. This amount has already been invested in assets with P1+ type ratings, the official added.

On the second day, the trust collected an additional Rs 20.25 crore. About 10 per cent or Rs 2.6 crore of the schemes corpus of Rs 26.56 crore has come in from the private sector mutual funds, the official revealed. The bulk of the subscription amount collected so far, has come from institutions and corporates which together accounted for around Rs 24 crore of the total corpus. Individual investors accounted for around Rs 6 lakh only. While the trust will be responsible for the fund management, it has tied-up with UTI Bank for investor interface.

 

The fund has been structured as an open-ended scheme with high liquidity. The UTI Bank will provide sale and repurchase of units across the board. Cheques will be credited to the account of the investors within 24 hours as opposed to the present industry standard of seven days.

The minimum investment is Rs 10,000. Initially applications can be made only at Mumbais Fort branch office of the UTI Bank.

On the date of launch the sale price was at par i.e., Rs 10. Thereafter, sale and repurchase prices will be at net asset value (NAV). There is, however, a nominal load on repurchase. For every repurchase, a transaction fee of Rs 20 will be charged. Continuous repurchase will be allowed after the prescribed lock-in period of 30 days.