According to sources, with a view to providing long term investment platform to investors, UTI has decided to remove five years investment tenure in its forthcoming MIP, which will result in no fresh lock-in period for the investors who want to continue their investment after completion of the plan. Under this new scheme, after five years of investment, investors can continue with the scheme and withdraw their investment or repurchase units of the scheme in any year at net asset value (NAV) basis or at par value, whichever is higher.

Earlier in this scheme, investors had to compulsorily withdraw their investment after completion of the plan and they had to reinvest in the next MIP scheme, which was attracting initial lock-in period for their investment. In case of repurchase during the lock-in period, protection of face value was not being guaranteed to the investors.

Investors could get prices for their repurchase at NAV, which might be lower than the face value.

Under MIP-2001, for the first year, UTI is offering 10.20 per cent per annum under cumulative and annual options and 9.75 per cent pa under monthly income options.

This scheme will open from January 8 and will close on February 21, 2001. This scheme is also being considered beneficial for bank employees, who have opted for voluntary retirement scheme (VRS).

UTI had mobilised a whopping Rs 622.87 crore in its last MIP-2000 (3) floated on August 30 last.