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India: UTI Mutual Fund plans foray into pension sector
Times of India
July 2, 2003
NEW DELHI - Country's biggest UTI Mutual Fund plans foray into pension sector once the government sets up Pension Fund Regulatory and Development Authority in October this year.
will bid for setting up a pension fund once the regulator is set up and
the guidelines are laid down," a senior official of UTI Mutual Fund
move is in line with Finance Ministry's plan of opening up the country's
pension sector to private players but at the same time have one PSU.
sources said an interim regulator PFRDA would be put in place by October,
which would lay down the guidelines for pension sector and then invite
applications from private players.
Mutual Fund could be one of the PSUs to apply for it. Some of the banks
and foreign pension players like PNB-Vijaya Bank-Principal Financial group
combine and Aviva Plc, also intend to foray into the pension sector.
erstwhile Unit Trust of India had launched an array of regular income
schemes intended to provide high returns to retired persons by investing
in mostly debt papers.
also had a low cost Unit Linked Insurance Plan, which it wanted to convert
into a dedicated pension plan 2-3 years ago and had approached Insurance
Regulatory and Development Authority for this purpose.
after the US-64 imbroglio two years ago, the fund had to shelve the plan.
Currently, UTI Mutual Fund is managing funds like GrandMaster, Master Gain, US-95, Mahila Unit Scheme and fund for Charitable and Religious Trusts, which provide regular income but are NAV-based and SEBI compliant.