Mumbai, June 23: UTIís Unit Linked Insurance Plan (UTI-ULIP) has announced a bonus of one unit for every 10 units ó the third bonus in a single year.
UTIís financial year is from July to June. Earlier, two bonuses of 1:10 each were announced on July 25,2002, and December 12, 2002, respectively.
According to UTI, taking the earlier two bonuses into account the cum-bonus NAV of UTI-ULIP is Rs 16.48 as on June 20.
Analysts aver the bonus announcement will not increase the value of the investment, as the total corpus of ULIP will now be distributed alongwith the new units given away as bonus. Thus the NAVs per unit will proportionately come down.
However, UTI-ULIP has shown a marked improvement in performance through a portfolio restructuring exercise, which saw increased emphasis on investment in government securities.
As of May 30, 2003, around 36 per cent of the debt portfolio was invested in government securities and 36 per cent in AAA debt papers.
Net non-performing sssets (NPAs) is now down to below 1 per cent, the fund said and added that equity exposure has been maintained below 40 per cent as per investment objective.