A bonanza is being offered for the investors under US-64 Re-investment Plan and Children Growth Plan, the UTI top brass has decided that dividend re-investment under the two plans will be at a notional value of Rs 10, this means

investors will now receive additional units at face value of Rs 10 per unit.

In earlier years, when the market price of US 64 units was higher, the investors had to get the new units at a premium to the face value. Mercifully, this time there will be no such payout from the dividend amount and additionally, the investor may end up getting more units, if the Net Asset Value-based sale price is lower than Rs 10 per unit in January 2002, when UTI would have declared the NAV of the US 64 scheme.

With the UTI management announcing the safety net for the US 64 scheme under the special liquidity package, the response to repurchase of units which commenced on 01/08/2001 Wednesday was lukewarm. There was no panic offloading of units in the eastern region on Wednesday.

Although the regional UTI office had opened 6 fresh counters for handling the redemption pressure, only 300-odd applications were filed in for the entire eastern region. This included around 150 applications from Kolkata and UTI sources said the redemption this time around was even far less than a "normal July" situation each year.

The sources said that investors have reposed their faith in the US-64 once they fully understood the implications of the bailout package promised by the government.

It obviously makes more sense to hold the units and avail of the promised 12 per cent annual return, rather than offload now in the face of falling prices and meanwhile, for the US-95 and UTI G-Sec Funds, the Trust has just taken a decision to subdivide the face value of the units under these schemes into 10 units of Rs 10 each.

The existing unit holder under these schemes is being issued fresh statements of account for their revised holdings. NAV, sale and repurchase prices for the schemes are now being issued on Rs 10 basis.