Partnership between India Post

Port Blair, Feb 15 (UNI) The Department of Posts, Andaman and Nicobar Islands, has inked a deal with UTI Mutual Fund to provide investment opportunities to tsunami hit islanders in the booming equity markets.

Now investments in various UTI mutual funds would be available at selected post offices of the island, Andaman India Post director Madhumita Das said here today.

The partnership is being done with the UTI's current New Fund Offer, a Long Term Advantage fund that provides Tax savings under Sec 80 (C).

Investments in this fund is open up to March 20, Ms Das said.

She said the performance of mutual fund in India and UTI in particular in the last five years had been quite spectacular with a return on investments with an average of 30 to 40 per cent.

The Postal departments had emerged as one of the largest distributors of UTI in the past two years, she added.

'' Now with the introduction of this partnership the department hopes to cater to investment needs of people of the islands,'' the director told UNI.

According to sources the LTAF, being offered through the post offices, has the double benefit of probability of high returns since investments would be made in diversified equities according to the market performance of various sectors of the economy.

The tax saving features, which allows for deduction under Sec 80 (C) up to an investment of Rs one lakh and also exemption of both the dividend and the redemption amount from income and capital gain tax, would be for 10 years but the investor can withdraw his money after 3 years, she added.

Besides, the department had been providing Small Savings options for urban&rural folks since last 125 years, Ms Das added.

UNI