Partner Channels: Bill Pay | Health | IT Education | Jobs | Technology | Travel
June 20, 2001
|
|
|
|
|
|
||
|
Channels: Astrology | Broadband | Contests | E-cards | Money | Movies | Romance | Search | Wedding | Women Partner Channels: Bill Pay | Health | IT Education | Jobs | Technology | Travel |
||
|
|
||
|
Home >
Money > Business Headlines > Report June 20, 2001 |
Feedback
|
|
|
Rs 23.02 billion UTI redemption in MayBS Markets Bureau Unit Trust of India faced massive redemptions worth Rs 23.02 billion in May. The redemption in its flagship scheme US 64 was close to Rs 20 billion, according to estimates. UTI executive director B G Daga said that this was unofficial estimate and the actual figures were yet to be computed. UTI is expected to take a final decision on the fate of US 64 on July 2 when its board meeting would consider the results for the year 2000-01 (July-June). At present, the MF is struggling with the huge redemption pressure. Much of the rush for redemption is being seen as a pure panic reaction from investors who apprehend an erosion in their holdings once the scheme becomes NAV-based. According to UTI officials, it is only the redemptions from US 64 that the Trust has been hit with. Otherwise, its collections are more or less at par with other funds, which would have collected roughly Rs 2.30 billion each. Sales of UTI were at Rs 3.76 billion in May. While other funds, especially those in the private sector, have been witnessing a flow of corporate money, UTI is attracting largely retail money. Trust officials said that this was a pointer to investors' trust in the fund in spite of the adverse investment climate. UTI did not raise funds through any new scheme during the last two months (April-May) and the value of assets under the largest fund management stood at Rs 576.84 billion in May. On a year-on-year basis, the collections by the mutual fund industry in May this year moved up 24.3 per cent to Rs 79.37 billion as against Rs 64.29 billion in May 2000. Redemptions also kept pace moving up 21.8 per cent to Rs 67.13 billion, according to figures released by the Association of Mutual Funds of India. All the collections were through sale of units of existing schemes since no fund floated any new scheme in the reporting month. The value of the total assets under the management of the mutual funds declined by 7 per cent to Rs 967.95 billion in May this year as against Rs 1040.32 billion in the same period last year. Powered by YOU MAY ALSO WANT TO READ:
|
||||
