UTI has been clearly inclined towards investing in equity as compared to debt in the new fiscal as the current valuations on offer in the equity markets are attractive. UTI is also planning to open UGS 10,000 for further investments in December. The UGS 10,000 scheme invests only in multinational stocks and was initially made available for investments only to UGS 2,000 and UGS 5,000 investors. ``This is one of our best performing scheme which has outperformed the index by around 25 per cent,'' said a top UTI official.

The NAV of the scheme has gone up from Rs 10 initially to Rs 11.36, a rise of 13.6 per cent. During the same period, both the BSE Sensex and the BSE100 have gone down by 15 per cent. Investments in UGS 10,000 confine to MNC stocks and according to the fund managers, it is a very actively managed scheme. Some of the stocks included in the portfolio are HLL, ITC, Castrol, Bausch & Lomb, P&G, Burroghs Welcome and Exide Industries.

The scheme was launched in May, 1998 and managed to garner Rs 70 crore. ``The markets have been volatile with huge daily fluctuations due to the currency and South Asian markets turmoil which has affected the Indian markets. Thus, looking at the huge volatility we have been actively churning the portfolio of this scheme giving us good returns,'' said a senior trust official.

UTI has been flush with funds with huge mobilisations both in equity and debt. Its monthly income plans have been very successful with the MIP (III) plan attracting investments of around Rs 1,400 crore. The same amount is expected in MIP (IV), a scheme which opened for investment on September 28 with assured monthly income of 12.5 per cent per annum and13.25 per cent on an annual basis.

Besides, UTI's best performing equity fund, Masterplus '91 is going open-end on October 1 this year. The scheme has a corpus of over Rs 1700 crore. The fund is believed to be holding around 25 per cent of the corpus in cash and short-term securities to meet redemption pressure. The fund has a net asset value of Rs 19.02 which gives a return of 90.2 per cent over a seven year period. This gives an annualised return of 12.88 per cent.