Unit Trust Of India Unveils Mip 2000

The Unit Trust of India (UTI) has launched its Monthly Income Plan (MIP) 2000, the strongest brand from the UTI stable after Unit Scheme-64, with a rate of income distribution at 9.25 per cent per annum and 9.65 per cent for the first year.

The four-year nine months closed ended income plan opened for subscription yesterday and closes on June 24. The plan proposes to invest mainly in debt instruments.

The MIPs have been one of UTI's highest revenue earners in recent months and between July 1999 and March 2000, net inflows from MIPs alone accounted for 2,100 crore out of a total inflow of Rs 2,491 crore.

 

According to a UTI release, MIP 2000 has three options - monthly income option, annual income option and cumulative option. The income distribution is tax-free in the hands of investors. For subsequent financial years till March 2005, the rate of income distribution will be announced in advance in March every year. In the case of both the annual income option and the cumulative option, the rate of income distribution for the next one year up to June 2001 has been pegged at 9.65 per cent per annum.

The units of the plan are proposed to be listed on the wholesale debt segment of the National Stock Exchange (NSE) within six months of the closure of the scheme.