The assured monthly income plans have been the mainstay of UTI's mobilisation in the last few years with MIPs for calendar 1998 collecting over Rs 4000 crore. ``Although the Deepak Parekh committee wants UTI to completely do away with assured returns, it will still be a step in the right direction as returns will more be in line with the market,'' said an analyst.

The first MIP for calendar 1999 has been a resounding success, mobilising Rs 2700 crore. ``We have approached the Securities and Exchange Board of India to retain the entire amount of Rs 2700 crore and a response is awaited,'' said Sen. Sebi had earlier put a ceiling of Rs1000 crore on mobilisation under MIP '99 which was hiked to Rs 2000 crore later.

The Trust is unlikely to launch its Institutional Investor Fund (IISFUS) in the immediate future with a number of institutional investors putting money in the MIP. ``IISFUS will not be launched during the current year whiich ends on June 30. However, it may be launched on a later date, depending on the market situation,'' said Sen.

``With MIP '99 a big hit, IISFUS has been put on the backburner. A number of big ticket investors, who were shying away from investing when the ceiling was Rs 1000 crore, have invested heavily when the cap was raised to Rs 2000 crore,'' added a market source.

The tax-free yield of 11.3 per cent (10.75 per cent payable monthly) attrcated investors in hordes to MIP '99. ``The money that was earlier parked in tax-free RBI relief bonds with a coupon of 9 per cent moved to MIP. Second, a number of investors who booked profits in the current market rally parked their money under section 54EA in MIP,''said an analyst.