NAV-based US-64 in 2002

S. Vaidya Nathan

THE flagship fund of the Unit Trust of India (UTI), US-64 is to be made NAV-driven (that is sale and repurchase prices will be based on NAV) in early 2002.

This is the indication given by the UTI Chairman, Mr P. S. Subramanyam. At present, the sale and repurchase prices are fixed arbitrarily with no linkage to the underlying asset value.

At times, this has led to prices that were lower than the NAV. But for much of the last five to six years, the sale prices have generally carried a premium to the NAV. This has led to upfront capital loss for the investors. All this could take a turn for the better when the UTI moves towards an NAV-based pricing system. The entry and exit load are generally in a 0 to 5 per cent band now. While this is an important aspect, when NAV-based pricing comes into vogue, investors would know better what are buying/selling.

No exit load: From December 29, new investments in Alliance Liquid Income, an open-end debt scheme from Alliance Capital Mutual Fund, will not be subject to any redemption (exit) load. Earlier, a redemption (exit) load of 0.5 per cent was imposed on unitholders redeeming their investment from the Scheme within a period of six months from the date of allotment of units. The investment objective of Alliance Liquid Income is generation of fixed income through a portfolio invested 100 per cent in debt and money market securities.

Alliance MIP Dividend: Alliance Capital has announced a dividend of 1.20 per cent for the Quarterly Dividend Plan in Alliance Monthly Income for the period ended December 29. The dividends are tax-exempt in the hands of investors. The mutual fund has paid 22 per cent distribution tax on the dividends declared. The NAVs as on December 29 for Alliance Monthly Income are: Growth Plan: Rs 12.92 per unit Monthly Dividend Plan: Rs 10.00 per unit Quarterly Dividend Plan: Rs 10.15 per unit.

Alliance Cash Manager: Alliance Cash Manager declared Rs 1.47 per unit as dividend for the week ended December 29. Alliance Cash Manager, an open-end debt scheme, declared a dividend of Rs 1.47 per unit of Rs 1,000 in its weekly Dividend Plan for the week ended December 29. Investors on record under the Dividend Plan option as on December 29 are eligible to receive this dividend. The NAV as on December 29 for Alliance Cash Manager Dividend Plan was Rs 1,001.80.

Kotak Dividend: Kotak Mahindra Mutual Fund has announced a dividend of Rs 0806 per unit for its K-Gilt Monthly Savings Plan, Rs 0.3033 per unit for K-Gilt Investment Plan (quarterly) and Rs 0.4786 per unit for K-Bond Deposit plan. The face value of the units of each scheme is Rs 10 for every unit.

Dundee Dividend: Dundee Mutual Fund has declared a dividend of Rs 0.100 per unit for Dundee Sovereign Trust, Rs 0126 per unit for Dundee Corporate Bond Fund and Rs 0.070 per unit for Dundee PSU Bond Scheme. Record date for schemes was December 15.

Birla Sun Life Dividends: Birla Mutual Fund declared a gross dividend of 2.25 per cent (inclusive of 22 per cent dividend tax) and net dividend of 1.84 per cent (Rs 0.184 per unit) for the quarter ended December 15. All investors as of this date are eligible for the dividend.

The fund had earlier paid 2.56 per cent and 2.25 per cent for the quarters ending June 18, 2000 and September 15, 2000 respectively. For Birla Gilt Plus, dividends of 1.84 per cent, 2.05 per cent and 2.05 per cent have been declared for the liquid, investment and long-term plans. These are tax-free in the hands of investors; the eligibility date was December 15.

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UTI Dividend: The UTI has announced a 20 per cent dividend for UTI Growth Sectors (Services) Fund and a 15 per cent dividend for Master Equity Plan 1996. The book closure period is between January 20 and 28.

Chola Dividend: Cholamandalam Cazenove Mutual Fund has announced a dividend of 2.50 per cent for Chola Triple Ace, 2.7 per cent for Chola Freedom Income, 0.70 per cent for Chola Gilt Savings Plan and 3 per cent for Chola Gilt Investment Plan.

VRS Fund from UTI: The Unit Trust of India is to come out with a scheme to tap VRS compensation of banks and other public sector employees. It has filed with SEBI for clearance.

Birla Mutual Fund: Birla Mutual Fund has announced that there would be no entry or exit load for the Birla Monthly Income Plan. There would be a contingent deferred sales charge of 0.50 per cent.

Online MF plaza: Icicidirect.com, an Internet broking site, has launched its mutual fund plaza to enable online investment in mutual funds. The plaza would initially offer schemes from the Prudential ICICI Mutual Fund stable and later enlarge coverage to other funds.

DSP Liquid Option: DSP Merrill Lynch Investment Managers have announced a weekly dividend option for the DSP Merrill Lynch Liquidity Fund. This is a dividend reinvest option under which the fund will declare weekly dividends. The minimum investment is Rs 25,000. The dividend will be compulsorily re-invested by allotting additional units.

Sun Value Fund: The board of trustees of Sun F&C Mutual Fund has declared a dividend of 35 per cent (Rs 35 per unit) on a face value of Rs 10 for the Sun F & C Value Fund - Dividend Plan. The dividend will be paid to those unitholders as of December 18. The dividend will be paid within 42 days of the Record Date. The Dividend Plan of the Value Plan is ex-dividend from December 19.

Magnum Gilt Fund: SBI Mutual Fund extended the initial offer period of its Magnum Gilt Fund scheme by a day. The scheme closed for subscription on December 22.

MIP from SBI Mutual: SBI Mutual Fund is planning to launch an open-ended monthly income plan by end of this fiscal. It has filed for SEBI approval.

US-64 prices: The Unit Trust of India has fixed the sale price and repurchase price for US-64 at Rs 14.10 per unit and Rs 13.80 per unit respectively for January. These prices represent a 10-paise rise over the December prices.

Approved securities: Seven open-end equity and debt schemes of SBI Mutual Fund were declared approved securities by the Government of Maharashtra. Charitable and other trusts, which usually invest only in government-approved securities, can now invest in MagnumInsta Cash Fund, Magnum LiquiBond, Magnum TaxGain, Magnum Multiplier, Magnum Equity Fund and funds under the Magnum Sector Funds Umbrella.

HDFC Tax Fund: HDFC Mutual Fund is launching a tax savings scheme, HDFC Tax Plan 2000, structured as an equity-linked tax saving scheme. After an initial public offering of two days on December 26 and 27, the scheme is available on an ongoing basis from January 2 at NAV-based prices. There is no load till March 31. A minimum lock-in period of three years is applicable. The fund will invest 80 per cent of its assets in equities and the rest in debt instruments.

Jardine Fleming Dividend: Jardine Fleming India Fund has Declared income distribution of $1.4772 per share from long-term capital gains. The distribution is payable on January 12, 2001 to shareholders on record as of December 28, 2000. The Fund is a closed-end, non-diversified management investment company seeking long-term capital appreciation through investments primarily in listed equity securities of Indian companies. The Fund's investment manager is Jardine Fleming International Management.

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India Growth Fund: The India Growth Fund, Inc. has declared income distribution of $0.4668 per share from long-term capital gains. The distribution is payable on January 12 to shareholders on record as of December 28, 2000. The Fund is a non-diversified, closed-end management investment company that seeks long-term capital appreciation through investments primarily in equity securities of Indian companies. The Fund's investment adviser is Unit Trust of India Investment Advisory Services Limited.