Unit Trust MIPs Bounce Back With 8.5% First Half Returns

New Delhi, October 23: | Updated: Oct 24 2002, 05:30am hrs
Notwithstanding the bearish equity markets, Unit Trust of Indias existing monthly income schemes (MIPs) have generated positive returns of up to 8.5 per cent during the first-half (H1) of the current fiscal compared with negative return of upto 29.3 per cent during the previous half-year period ended March 31, 2002.

The 13 MIPs, which suffered an erosion in assets due to their high exposure of upto 20 per cent, have returned an average 3.21 per cent during the six-month period compared with a negative 13.11 per cent during the previous half.

Of the 13 plans, MIP 97 (IV) is the only scheme which has given negative return (-0.52 per cent) during the first-half ended September 30, 2002, according to data available with Delhi-based Value Research, which tracks mutual funds. In comparison, the previous half-year period saw all these schemes giving huge negative returns.

Net asset values (NAVs) of these troubled schemes with most of them having an assurance on returns, however, are still way below the par value of Rs 10.

During the period, the 13 plans have also seen a combined erosion of almost Rs 199 crore in their asset base from Rs 11,161 crore as on March 31, 2002 to Rs 10,962 crore as on September 30, 2002.

The erosion in their corpus could be due to outflows from these closed-end plans as they provide an exit route at NAV-based prices.

With a corpus of Rs 515 crore, MIP 98 (II) tops the performance chart for the half-year period ended September 30 with a return of 8.5 per cent.

Interestingly, this plan had given a negative return of as high as 29.3 per cent during the previous half-year period.

Others like MIP 98 (V) gave six-month returns of 5.8 per cent (previous half-year period negative 16.19 per cent), MIP 99 4.68 per cent (negative 7.63 per cent), MIP 2000 3.92 per cent (negative 10.44 per cent), MIP 98 (IV) 3.66 per cent (negative 9.88 per cent), MIP 98 (III) 3.43 per cent (negative 13.26 per cent), MIP 2000 (III) 3.27 per cent (negative 16.58 per cent), MIP 2001 3.12 per cent (negative 11.64 per cent) and MIP 98 2.92 per cent (negative 12 per cent).

This also shows that the plans which were launched in the year 1998 have performed well during the period compared with the previous half. Plans like MIP 99 (II), MIP 97 (V) and MIP 2000 (II) have given returns in the range of 1.54-0.39 per cent. These three plans had given negative returns in the range of 7-14 per cent during the half-year ended March 31, 2002.