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S. Vaidya Nathan

LIC Mutual Fund is to convert the Dhanavarsha-12 into an open-end monthly income plan. Dhanavarsha, a close-end income scheme, was launched in April 1998.

The fund has filed with the Securities and Exchange Board of India for approval for the conversion. The proposed open-end scheme will offer monthly income, yearly income and growth options.

The new version of Dhanavarsha will be effective from June 1, 2003. This is a change in the fundamental attribute of the scheme.

Under the SEBI mutual fund regulations, existing investors will have the option of redemption at NAV as of May 31 2003.

There will be an exit load of 0.5 per cent for investments of less than Rs 10 lakh if the funds are pulled out within less than six months of the investment.

Reliance Banking Fund: Reliance Capital Mutual Fund has launched the Reliance Banking Fund.

This sector specific fund, which will invest in banking stocks, comes at a time when market fancy for stocks from this sector is at a high level.

UTI G-Sec dividend: UTI Mutual Fund has announced a dividend of 3.5 per cent on UTI G-Sec fund.

Investors as of May 9 2003 will be eligible for the dividend. The fund has an asset base of Rs 160 crore under the Dividend Option and Rs 115 crore under the Growth Option.

Alliance MIP dividend: Alliance Capital Mutual Fund has announced a dividend of 0.7 per cent for the Monthly Dividend Option of the Alliance Monthly Income Scheme. The dividend is for the period ended April 30.

Kotak dividend: Kotak Mahindra Mutual Fund has declared a dividend of Rs 0.0457 per unit for the K-Bond Short Term Plan. The dividend is payable to investors as of March 12.

JM load: JM Mutual Fund has announced an entry load of 1 per cent on all investments made in JM Mutual Fund Serial Plan 2004 on a prospective basis. There will be a one per cent exit load as well.

The load changes take effect on May 15. The load structure for all investments made prior to this date will be the one that was in place when the funds were invested in the scheme.

HDFC FIP: HDFC Mutual Fund has launched a Fixed Investment Plan May 2003 (1). This is a close-end income scheme and is part of the HDFC Fixed Investment Plan.

The initial offer was between May 12 and 15. The maturity date of the plan is May 31, 2004.

There is no entry load. But there is an exit load of 1 per cent if redemption is made before the maturity date.

No exit load is applicable for a switchover to other schemes HDFC Mutual Fund.

US-64 prices: The repurchase price for unit holdings of up to 5,000 units (enhanced from 3,000 units) is Rs 12 per unit in May under the Special Liquidity Package.

The package was offered from August 2001 at Rs 10 per unit and is due to end this month at Rs 12 per unit.

The price for April was Rs 11.90 per unit. For holdings in excess of 5,000 units, a repurchase facility linked to the NAV is available from January 2, 2001.

For such holdings, an assured repurchase price of Rs 10 per unit or NAV, whichever is higher, is available on May 31, 2003, if the units are held till then.

If redeemed earlier, the redemption will be at NAV-based prices if carried out before May 31, 2003. For less than 5,000 units, the assured repurchase price for May 2003 is Rs 12 per unit.

These special repurchase prices will also be available beyond May 2003.

Investors have the option of receiving government of India-backed bonds with a coupon of 6.75 per cent per annum and a tenure of five years.

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