The Unit Trust of India (UTI) booked a loss of Rs 2,349 crore on sale and redemption of investments in 48 schemes during the six months ended June 2002.
The loss is attributed to the massive redemption of Rs 9,272 crore UTI had to face during the six months. Of the total redemption of Rs 9,272 crore, Rs 5,297 crore was on account of the maturity of schemes.
Of the 63 schemes for which six monthly revenue account is available, only 13 schemes have managed to book profits on sale of assets, aggregating Rs 62 crore.
The flagship scheme US-64 accounted for 42 per cent of the aggregated loss of 48 schemes. The loss on sales of investment for US-64 in fact increased to Rs 991 crore during January-June 02 from Rs 234 crore during January-June 01.
The Monthly Income Plan 2000 was the second worst loser with a loss of Rs 179 crore against Rs 21 crore loss in June 2001. The Child Growth and Gift Fund '86 was the third worst hit, booking a loss of Rs 159 crore as on June 30, 2002.
Mutual Fund 1986 made a loss of Rs 104 crore followed by the Growth Sector fund- Software with a loss of Rs 76 crore. The schemes attempt to take advantage of trading opportunities arising out of volatility in the market, thus denting earnings.
While its G sec, a open ended gilt fund, earned maximum profits through churning of its portfolio. The profit stood at Rs 17.94 crore as on June 30, 2002. The scheme, was among the excellent performer of the fund house basket which provided over 14 per cent returns since inception.
Mastergrowth followed with a profit of Rs 14.76 crore. Profit booking at counters such as Bharat Petroleum Corporation Ltd, Gujarat Ambuja Cement, Hindustan Lever, Oil and Natural Gas Commission triggered the gain for the scheme. Unit Scheme 95, a balanced fund made a profit of Rs 10 crore.
