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July 5, 2001
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Money > Business Headlines > Report July 5, 2001 |
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UTI's investible funds at a five-year lowB G Shirsat The Unit Trust of India's investible funds declined to a five-year low in May 2001. Data provided by the Association of Mutual Funds in India shows that investible funds or assets under management with UTI dipped to Rs 576.84 billion in May 2001 from an all-time peak of Rs 765.47 billion in March 2000. Indeed, the diminution in UTI's investible funds -- the corpus made up of unitholders' subscriptions -- can be directly traced to the decline in market indices following the meltdown in ICE (information, communication and entertainment stocks) off their highs in early 2000. As a result of redemption and decline in fresh inflows, the assets under UTI management declined by Rs 188.63 billion from the peak. The large exodus in the UTI's investors base and assets begins immediately after UTI announced a lower rate of dividend at 13.75 per cent in its flagship scheme US-64. As a result the assets in July 2000 declined to Rs 692.04 billion from Rs 751.59 billion in June 2000. As the decline in the market value of new economy stocks continued, the assets under UTI fold declined further by nearly Rs 50 billion during next two months. As at the end of October 2000, UTI's assets fell to Rs 627.06 billion. As the market looked up between November 2000 and January 2001, the assets perked up again to Rs 662.78 billion in January 2001. The assets dipped immediately after the budget and in four month's time the asset base declined by Rs 86 billion to Rs 576.84 billion in May 2001. During the first 11 months of UTI's financial year 2000-01 (July-June), its sale of units aggregated Rs 81.60 billion. During the same period, the redemption of units was higher at Rs 107.18 billion. In May 2001, the outflow was higher by Rs 19.25 billion. Powered by YOU MAY ALSO WANT TO READ:
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