With the spurt in NAV, the effective gap has now narrowed to Rs 70 per unit. Based on the current NAV, the shortfall in the scheme works out to Rs 130 crore. The fund has a unit capital of Rs 185 crore.

``The scheme has aggressively restructured its portfolio in the last 7-8 months. Around 35 per cent of the funds are currently deployed in debt securities with a coupon of 14 per cent,'' said an official of the fund. On the equity side, the top 30 holdings now account for 96 per cent of the equity investments while a year back, as many as 65 holdings made up for 90 per cent of the equity component. The top 20 scrips include HLL, NIIT, Zee Telefilms,Britannia, BFL Software, SBI, Infosys, Pfizer, Bata, Software Solution, Tata Tea, DSQ Software, Glaxo, Dr Reddy's, Burroughs Wellcome, ITC, BHEL, Archies and Punjab Tractors.

``The portfolio is very strong now and mainly has scrips which will continue to post gains in the future. It is highly unlikely that the NAV will now see a sharp drop from the Rs 230-level. On the contrary, it can post further gains,'' said a fund analyst.

According to sources, the AMC was looking at a shortfall of Rs 150-170 crore in the fund. If the growth in NAV continues, the gap will be further narrowed.

Magnum Triple units currently trade at Rs 281 on the Mumbai Stock Exchange which translates into a premium of 22 per cent to the current NAV. This still leaves a gap of Rs 19 or around 6.33 per cent between the market price and the redemption prices.

Magnum Triple Plus was launched in September, 1991 and aimed to cumulate returns in a way that at the end of the 90th month, an investor will get an amount equivalent to threetimes the investment or more. The fund also promised a repurchase at Rs 152 after three years, Rs 175 after four years, Rs 202 after five years and Rs 270 after seven years. Magnum Triple currently has over 1.5 lakh investors.

While the rally in the bourses has come at the right time for Magnum Triple Plus to help narrow the gap between the NAV and promised redemption price, BoI Double Square Plus from BoI Asset Management Company will also face a shortfall when its units come up for redemption in August next year. The AMC has promised redemption of units at Rs 400. The fund had a NAV of around Rs 207 as on February 24, which means that the NAV has to appreciate by 93 per cent to bridge the shortfall.

The units of BoI Double Square currently trade at Rs 296 on the Mumbai Stock Exchange, which translates into a premium of 43 per cent to the NAV.