Mumbai, Dec. 13: The board of Unit Trust of India will meet next week to consider making the Unit Scheme (1986) (Mastershare)—which has a corpus of Rs 1,020 crore—an open-ended scheme.
Mastershare, one of UTI’s popular offerings, is currently a close-ended scheme, a dispensation the country’s largest mutual fund plans to change as a close-ended scheme cannot issue fresh units, whereas open-ended ones can buy and sell units close to their net asset values. The move would mean that the scheme’s corpus could grow through inflows as it has been one of the out-performers in the industry, having recorded positive earnings from its investments.
The proposal will be considered by the board at its December 23 meeting. Since Mastershare is a listed scheme, a notice to this effect has already been given to the stock exchanges.
Mastershare, the first mutual fund scheme, was launched in September 1986. Its principal objective is to provide unit holders the benefits of capital appreciation and regular income distribution through investment in equity and equity-related instruments.
Mastershare has been among the consistent performers in UTI’s portfolio and boasts an impressive track record of uninterrupted dividend distribution for 16 years.
The scheme has also rewarded investors with three bonuses and two rights issues (1989 and 1994) since inception. In October this year, the fund made an income distribution of 10 per cent to its unit holders and net asset value of the fund is currently pegged at Rs 11.18 per unit. Meanwhile, UTI has also announced a bonus of 1:10 (one unit for every 10 units held of face value Rs 10 each) under its Unit Linked Insurance Plan 1971, Ulip 71.