Unit Trust Money Market Fund Mops Up Rs 31.08 Cr

The UTI Money Market Mutual Fund Scheme, UTI's maiden foray in the money market mutual fund sector, has collected Rs 31.8 crore during its first 30 days of sales.

There was no initial offer period for the scheme (following a Sebi exemption) and the scheme will be open for sale and repurchase from today.

Under the terms of the offer document, continuous repurchase will be allowed after the prescribed lock-in period of 30 days which began on April 23.

The scheme collected a total of Rs 26.56 crore in the first two days after it was opened for subscription. On the launch date, the collections totalled Rs 6.31 crore.

 

Therefore in theoretical terms, the scheme can expect repurchase requests only to the extent of Rs 6.31 crore today.

The UTI executive trustee P J Nayak acknowledged that the collections of the scheme had trickled down after the initial positive trend.

He said that a new product (like a money market mutual fund) needs more time to attract the investors attention.

UTI is confident that the scheme will continue to mop strong subscriptions in the future, he added.

A senior UTI official said there has been a steady flow in the corpus and about Rs 6-7 lakh had come in every day.

Senior UTI officials said the collections have already been invested in assets with ratings of P1+ type. UTI sources disclosed that about 10 per cent of the scheme's corpus of Rs 31.8 crore has come in from private sector mutual funds.

The bulk of the subscription amount, collected so far, came in from institutions and corporates which together accounted for around 90 per cent of the total corpus. Individual investors accounted for a small percentage of the total collections.

UTI sources said the scheme has received a favourable response and corporates, institutions and large networth individuals have shown a lot of interest in the scheme. The fund has been structured as an open-ended scheme with high liquidity and UTI Bank will provide sale and repurchase of units across the board.

The minimum investment is Rs 10,000 without any maximum limit. There is however a nominal load on repurchase.