UTI-ULIP members receive 1:10 bonus

Mumbai, Sep 24 (UNI) UTI Unit Linked Insurance Plan (UTI-ULIP) has announced a bonus of one unit for every 10 units of face value of Rs 10 each.

Pursuant to the payment of bonus, the NAV of the scheme would fall to the extent of bonus units allotted and statutory levy if any, according to a relese from UTI Mutual Fund. The record date is September 30, 2008.

The NAV per unit was Rs 15.5370 on September 23, 2008.

Mr Amandeep Chopra, the Fund Manager of the scheme said in the release that ULIP is the first insurance linked mutual fund product in the country with a corpus of Rs 3,118 crore. The scheme was positioned as a balanced fund with a long term investment objective aiming to deliver reasonable return in comparison with similar products.

UTI-ULIP is an open-end tax saving cum insurance scheme. The investment objective of the scheme is primarily to provide returns through growth in NAV or through income distribution and reinvestment thereof. It is a unique product, which provided multiple benefits to its investors viz. Life Insurance Cover without any medical examination, Accident Cover up to Rs.50,000, Tax benefits under sec 80C of Income Tax Act, 1961, Easy Liquidity and Ability to time investments for payment of renewal contribution Recently UTI Mutual Fund has further enhanced the features of the scheme by increasing the target amount to Rs 15 lakhs from Rs five lakhs and providing flexibility to invest higher than the maximum target amount.

To provide greater flexibility and easy convenience to investors, UTI Mutual Fund has also introduced Monthly and Quarterly Systematic Investment Plans (SIP) under UTI ULIP.

He said given the long term nature of the product, emphasis is laid on adjusting the asset allocation depending on the prevailing market conditions. The scheme is ideally suited for investors looking for growth over a horizon of 10-15 years with added benefits of life insurance cover, accident cover and tax benefits.

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