UTI hopes to raise Rs 10 cr per month from pension fund
UTI MF is confident that 1 mn members with 30 micro finance institutions would subscribe this year.india Updated: Apr 14, 2006 15:46 IST
UTI Mutual Fund expects to mop up Rs 10 crore per month within a year under its recently launched pension fund.
UTI MF is confident that one million members with 30 micro finance institutions would subscribe to UTI Retirement Benefit Pension Fund this year with average monthly subscription of Rs 100, its CMD UK Sinha said.
The company recently entered into an arrangement with Shri Maila Sewa Sahakari Bank in Ahmedabad to make the bank's low-income women members subscribe to the fund.
This way, these women members of the Ela Bhatt founded micro finance institution would get access to capital market for future retirement benefits.
Under this customised arrangement, SEWA Bank members will contribute small amounts every month towards the fund up to the age of 55 years so as to receive pension in the form of periodical income/cashflow after they reach the age of 58 years.
SEWA Bank has more than 2,75,000 depositors out of which 25,000 members are initially joining the scheme. The minimum amount of investment under this arrangement is Rs 50 and in multiples of Rs 50 thereafter.
Sinha said seven other micro finance institutions had showed interest in joining the fund.
He said he expected that one million members of 30 such institutions would subscribe to the fund within a year, with average monthly subscription of Rs 100.
"We are confident that the scheme will be able to reach at least one million workers of low income workers across the country, within this financial year," he said.
The fund invests at least 60 per cent in debt and balance in equity.