Fund Update
BoI MF to shell out Rs 1.38 cr under FestivalBank of India Mutual Fund will have to shell out Rs 1.38 crore under Plan B of its Festival Boinanza Scheme. The scheme was redeemed on December 10, 1997. The scheme, launched in December, 1991, offered growth (plan A) and income (plan B) options. While the net asset value of Plan A stands at Rs 11.58, that of Plan B is Rs 7.86 as on December 9, 1997. While units under Plan A will be redeemed at Rs 11.58, units under Plan B will redeemed at the face value. Thus, this leaves an effective gap of Rs 2.14. While Plan A has a unit capital of Rs 31.51 crore, Plan B's unit capital stands at Rs 6.48 crore. The Festival Boinanza Scheme was launched to help investors meet their requirements during the festival season. The fund mobilised were to be primarily invested in equities. 12% dividend under KP Pension Plan Kothari Pioneer has declared a 12 per cent dividend under its pension plan. The pension plan was launched in March, 1997. The fund aims to
achieve its objective through 100 per cent investment in debt and money market. The fund is available in two flavours, dividend plan and growth plan. Investment under the scheme are eligible for tax rebate @ 20 per cent under Section 88 (2) upto a maximum of Rs 60,000. Under the dividend plan, the dividend declared will be reinvested in the scheme until the investor is past 58 years. If the investor is past 58 years, the dividend will be paid to him. On attaining 58 years of age, investors can partially or fully redeem their investments. Premature withdrawal at a 3 per cent charge is allowed after an initial lock-in of three years. The latest ( January 2) Net asset value of the scheme is Rs 11.32 (Growth plan) and Rs 10.12 (Dividend plan). The fund's top holdings include debt instruments from GE Caps, Ashok Leyland Finance, Grasim, MRF and Thirumallai Chemicals. The fund has given an annualised yield of 17.53 per cent since launch. Kothari Pioneer is also planning to launch Children's Asset Plan, a
scheme aimed at helping Investors plan his child's future. The scheme will be available in two options, Gift plan and Education plan. The fund will invest at least 90 per cent of its corpus in debt and money market instruments. The minimum investment is Rs 2000.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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