UTI Mutual Fund today said it will soon come up with new products specifically for public sector companies that have been allowed by the government to invest a part of their cash surplus in mutual funds."Under the present rules, there should be at least 20 investors in an MF, and no single investor can have more than 25% stake. So we will come up new products to meet their requirements," U K Sinha, chairman & managing director, UTI MF said.The government had in August this year allowed navratna and mini-navratna CPSUs to invest up to 30% of their cash surpluses in public sector mutual funds. These cash surplus funds are estimated to be around Rs 3,00,000 crore.Sinha said initially CPSUs could invest in the present products, and added to begin with investments would be made by navratnas and mini-navratna companies.Earlier, speaking at a workshop on investment of surplus funds by CPSEs in MFs, organised by SCOPE, he said equity investments have given an average return of over 20% since the inception of Bombay Stock Exchange in 1979.Speaking on the occasion, R S Sharma, chairman & managing director, ONGC said: the company has about Rs 19,000 crore surplus funds, and the board will soon take a decision on investment in MFs.When comparised with returns on government debt that do not cross 7% on an annualised basis, the last three years' average return on diversified funds of UTI and SBI has been over 40%, S Behuria, chairman, Indian Oil said.
