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UTI Grihalakshmi may offer gold option

Nilanjan Dey

CALCUTTA, July 10

UNIT Trust of India has proposed to repackage its Grihalakshmi scheme to offer special benefits, including a gold option, to investors. In the revised form, purchase and sale would be based on NAV.

An adult female may invest in Grihalakhsmi and secure part-redemption on a date of her choice. This date could coincide with, say, her birthday or marriage. It could even coincide with a festival such as Raksha Bandhan or Diwali.

According to Mr. Brij Gopal Daga, Executive Director of UTI, the scheme was likely to provide a redemption alternative in the form of gold. UTI was negotiating with banks, including UTI Bank, to work out details of this proposal. Grihalakshmi, which coul d also be renamed to suit the proposed changes, would be largely invested in debt.

Grihalakshmi, after repackaging, was expected to meet a demand that was perceived to exist in typical Indian society, and the proposed redemption alternatives would make it an attractive investment destination.

A VRS fund was also under UTI's active consideration, according to Mr.Daga. The proposed fund was expected to make life easier for corporate employees who sought voluntary retirement from service.

He said UTI was also fine-tuning its distribution operation. Its plans included a national call centre and several financial centres. The call centre would ensure effective customer service. At least one financial centre would come up in Calcutta by end- October. Meanwhile, Stock Holding Corporation of India Ltd has been engaged as a marketing associate.

As for UTI's involvement in index futures, he said all new offer documents had this provision. UTI has already entered into four or five stock lending transactions, and hoped that stock lending activity would pick up in the days ahead.

UTI Investor Services Ltd (UTI-ISL), which handles about six million investor accounts, is being given additional responsibility. In all, UTI has 45 million accounts, of which 11 million are being handled by a number of registrars. Ultimately, it would a ll be handled by UTI.