``Interest rates have only gone down since then and the coupon will be inline with the prevailing interest rates. Although the rate of income has notbeen decided, it will be in the range of 10.25 to 10.30 per cent for themonthly option,'' said a UTI official.

The first MIP for 1999, which was the last scheme to assure returns for theentire tenure of five years, had assured a monthly return of 10.75 per cent,which translates into a annual income of 11.23 per cent. The schememobilised close to Rs 2700 crore. ``The key to the record mobilisation wasthat the launch of MIP coincided with the redemption of one of its earlierMIP,'' said an analyst. ``The fact that it was also the last MIP withassured returns for five years added to the collections,'' he added. MIP'2000, which opens for subscription in December, will offer monthly, annualand cumulative options to investors. The minimum investment is Rs 10,000 inthe annual and monthly options and Rs 5,000 for the cumulative option. Thescheme will come up for redemption in March, 2005.

The income distribution for subsequent years will be announced at thebeginning of each year. The scheme carries a lock-in of three years andunits will be repurchased under all the three options from February 1, 2003at a NAV-based price. While redemption of units at par has been guaranteedby the Development Reserve Fund, there is no guarantee of capital protectionduring the repurchase period from February, 2003 to March 31, 2005. Besides,units of the scheme will be listed on the wholesale debt segment of the NSE.The Trust has kept a target of Rs 100 crore for collections under thescheme. While returns will be tax-free in the hands of investors, there willbe a dividend tax of 11 per cent.