UTI Net Inflows Rise To Rs 338 Cr In Oct

New Delhi, November 28: | Updated: Nov 29 2002, 05:30am hrs
Unit Trust of India (UTI) has received net inflows of Rs 338 crore in the month of October. The whopping net inflow (the net of total inflows and outflows) is backed by a sharp spurt in gross inflows to Rs 1,185 crore in October 2002 compared to Rs 830 crore the month before.

The jump in total inflows is for the second month in succession since September 2002. The month of August had seen total inflows of only Rs 392 crore.

While UTI received a combined inflow of Rs 2,015 crore for September and October, it received only Rs 1,353 crore during the five-month period April-August. The US64 crisis coupled with huge shortfalls in assured return Monthly Income Plans drove away investors from the Trust.

With the announcement of a package by the Government to honour all commitments made by the Trust in the past, the investors seem to be turning to UTI once again, according to a source at a leading investment product distributor.

UTI has also become aggressive in selling its existing schemes, the source added.

The total inflow of Rs 1,185 crore in October also includes Rs 197 crore mopped up by its new scheme UTI Regular Income Scheme, according to figures available with the Association of Mutual Funds in India (Amfi).

During the period April-October 2002, the Trust has received a gross inflow of Rs 3,368 crore and a total redemption of Rs 9,666 crore. Of the total redemptions, Rs 5,967 crore was mainly on account of the maturity of various assured-return Monthly Income Plans (MIPs).

The redemption in October was Rs 847 crore which also has seen a sharp fall from Rs 1,345 crore in September. The existing schemes have contributed Rs 988 crore to the total inflow in October.

The assets under the management of the Trust have increased from Rs 44,255 crore in September to Rs 44,703 crore in October.

The fund industry as a whole witnessed a spurt in corpus from Rs 1,06,929 crore in September to Rs 1,13,153 crore in October.