Mumbai, Oct. 7 (PTI): The Unit Trust of India has filed a prospectus with the Securities and Exchange Board of India for Unit Scheme 2002 (US-2002), an open-ended net asset value based scheme carved out of its flagship US-64.
The scheme aims to provide income distribution and capital appreciation over a long term through a prudent portfolio mix of equity and fixed-income securities, UTI said in its offer document filed two days ago.
The scheme corpus would invest up to 75 per cent in debt and the exposure to equity investment would be a minimum 25 per cent and a maximum 55 per cent.
At least 7.5 per cent of the total investment would be in Government of India securities and for investment in corporate debt, the paper should have minimum ‘AA’ rating from the rating agencies, UTI said.
The UTI board on September 19 decided to bifurcate US-64 into two as part of a restructuring exercise with UTI chairman M. Damodaran stating that the Trust would seek Sebi approval for US-2002, which would have assets from the unit capital sold on and after January 1, 2002.
The basis for dividing the assets of the scheme was calculation of NAV as the scheme’s NAV-based sale and repurchases commenced from January. By current estimates, it is expected to have a capital base of Rs 181 crore and would be Sebi compliant from day one.
UTI said the face value of each US-2002 scheme would be Rs 10 and offer two options — income and growth options. Under the former, income would be paid out or reinvested at NAV/NAV-based price while on the latter, there would be no income distribution and it would be ploughed back and reflected in the NAV.
The investors can switchover from either of them at the respective NAVs, UTI said adding, the minimum amount of initial investment and balance to be maintained after partial repurchase would Rs 5,000 per folio. The subsequent minimum investment should be Rs 1,000 per folio per application without any upper limit subject to a minimum balance of Rs 5,000 being maintained per folio.