UTI plans more sectoral funds

By Our Staff Reporter

CALCUTTA, APRIL 25. The Unit Trust of India has decided to offer four more sectoral funds. The new products, awaiting formal approval by the board of trustees on April 27, will include telecom and commodity sector funds. The Internet, media and communication fund launched abroad has mopped up $60 million. It also plans to launch a specific fund for VRS optees. ``We have already spoken to 35-40 corporates and their employee unions. The proposed product has received considerable appreciation'', Mr. P. S. Subramanyam, chairman of UTI, told a press conference here today.

The UTI is aiming to reorganise its database for a far more aggressive marketing and improved customer care. The steps were recommended by McKinsey & Co. The major features are: an on-line network (intranet) connecting all its offices across the country; introduction of standard accounting procedure (SAP) leading to faster calculation of NAV and a unique identification number to all its customers. The first two were introduced in the last two months while the last one is expected to be on stream in the next six months.

Mr. Subramanyam said the single identification number would help identify the investment patterns of each investor in different schemes of UTI and offer future products to him or her accordingly.

Tata Consultancy Services (TCS) is developing the generic software for the project, opening opportunities for aggressive data mining to UTI. The project is implemented by McKinsey.

On the customer-care front, the UTI is fast introducing the concept of retail sale and service centres. A large number of UTI Financial Centres (UFCs), are being set up at multiple locations in metro cities and smaller towns. The intranet backbone will offer the customer an opportunity to take decisions on his investments from anywhere in the country.

The marketing process is streamlined through `composite application forms'. To be introduced within the next few days, the new application forms will offer the complete range of investment opportunities offered by UTI. ``So far we had been campaigning for each scheme separately. The flip side of the story is many investors are unaware of the opportunities available both in regard to his previous investment in some other scheme or to make a new investment'', said a company executive.

Mr. Subramanyam said the trust targets a gross collection of Rs. 17,000 crores in the current year ending June as against Rs. 13,000 crores in the previous year. The flagship scheme US-64 ``has been successful in cashing on the market boom in recent times and has earned substantial income this year.'' The reserves and surplus under the scheme, have swelled from Rs. 130 crores in 1998-99 to Rs. 4,200 crores in the first nine months of 1999- 2000.

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