UTI Mutual Fund is trying to mobilise money from liquid funds to monthly income plans by offering attractive gifts to distributors
UTI Mutual Fund is giving an upfront commission of 1.1% under its monthly income scheme (MIS), UTI Advantage Plan, for distributors to switch fund money from liquid funds to MIS schemes. Apart from a good brokerage, UTI MF is also offering attractive prizes to distributors including a trip to Tashkent.
“MIS plans have exit load of 1%, so asset management companies (AMCs) are able to give the same to distributors. Liquid funds are not very attractive for AMCs. Customers are asked to invest in liquid schemes first, then they are asked to switch to MIS plans for a long-term investment perspective,” said a distributor.
Industry sources say that the prizes include sports bicycles, and trips to various pilgrimage spots. Distributors who are able to mobilise more than Rs75 lakh stand to win a Volkswagen Polo through a lucky draw offer.
Besides, distributors mobilising 20 applications and more for a minimum of Rs3 lakh get a ‘Cricket India lookalike jersey’ with their names printed on it. The offer lasts until 31 March 2010 and the prizes will be announced after 17 May 2010.
“MIP schemes have more avenues of charging money than liquid funds,” said an independent financial advisor (IFA). Liquid funds charge an annual management fee of up to 0.70% that is lower than MIS schemes.
Monthly income schemes have a time horizon of six months to one year wherein a major portion of the fund is invested in debt instruments while liquid funds have a short term lock-in period of 7-10 days having a maturity period between three to six months. In case of liquid funds, the minimum investment amount ranges from Rs25,000 to Rs1 lakh. UTI MIS Advantage Plan had a corpus of Rs265.57 crore as on 28 February 2010. It has posted a return of 10.76% since its inception in December 2003.
Five members of a BPL family, including the spouse, are covered under the scheme. They can avail the benefits of 740 in-hospitalisation procedures
Altogether, 14.47 lakh below poverty line (BPL) families or about 47 lakh people in Maharashtra have been given biometric smart cards under the Rashtriya Swasthya Bima Yojana (RSBY), which has been rolled out in 28 districts, a senior official has said.
The state government has rolled out the scheme in 28 districts and enrolled 14.47 lakh BPL families to whom the biometric smart cards have been given, principal secretary, labour, Kavita Gupta told PTI in Mumbai on Wednesday.
RSBY provides for health insurance cover of up to Rs30,000 for hospitalisation procedures to BPL families. The scheme is being funded with 25% share of the state government and 75% by the Union government.
The individual makes a contribution of Rs30 and this individual contribution has been included in the design of the scheme in order to give ownership of the scheme to the BPL participants, Ms Gupta said.
"Five members of the family, including the spouse, are covered under the scheme. They can avail the benefit of 740 in-hospitalisation procedures under the RSBY," said Ms Gupta, who has received an award from the Union ministry of labour for "outstanding contribution in individual capacity" for implementing the RSBY scheme.
The scheme has taken a special view of women as it is compulsory for the family to include the spouse, which ensures the wife is not neglected. Maternity benefits are covered under the scheme, she said.
Even if persons given biometric cards migrate to other states where RSBY is being implemented, they can avail benefits of the scheme from empanelled hospitals in those states, Ms Gupta said.
"Being a cashless insurance scheme, the smart card given to the enrolled BPL families acts like a debit card worth Rs30,000 on which the enrolled BPL families and their members can take benefit of 740 in-hospitalisation procedures in the empanelled hospitals, across the country," she said.
Five insurance companies are implementing this scheme in Maharashtra and have empanelled around 700 private hospitals.
This means that BPL persons are no longer restricted only to government hospitals for free treatment but can also approach these private hospitals and be treated free of cost.
The state labour department is the nodal agency for implementation of the scheme in Maharashtra, Ms Gupta said.
Capital Foods claims to have grown 30% over the last six months in its revenues from the sale of food items after it ran an advertising campaign on Facebook, a social media network
The growing reach of popular social networking websites such as Facebook has been effectively used by fast moving consumer goods (FMCG) player Capital Foods to push up its noodles and soup sales over the last six months, reports PTI.
The company, which is an emerging player in the country's consumer market, has seen a 30% growth over the last six months in its revenues from the sale of food items after it ran an advertising campaign on Facebook, Capital Foods' chairman and managing director Ajay Gupta said.
"Advertisement campaigns in social networking sites such as Facebook and Twitter are the new marketing strategies these days. We have seen a 30% rise in our revenues in the last six months after we launched the campaign for our Ching's Noodles and soups on Facebook," Mr Gupta told PTI.
The Mumbai-based company, which clocked a turnover of Rs210 crore in the last financial year, expects to achieve a total turnover of Rs300 crore in the current fiscal from its operations in both domestic and foreign markets, Mr Gupta said.
The company, which makes instant noodles, soups and sauces under Ching's Secret, and 'Smith and Jones' brands, has targeted a monthly sales growth of 5% through its campaigns in Facebook and Twitter, he said.
"We have crossed one lakh followers on Facebook. Other leading FMCG brands have failed even to touch 30,000 so far," Mr Gupta said, adding that Ching's Secret’s Facebook community is part of its advertisement strategy to make the brand popular globally.
The company is eyeing a 20% share of the Rs1,000-crore packaged noodles segment in the domestic market over the next two years on the back of online advertising campaigns.
"We are using social media for crowd sourcing and to track what are the next flavours to launch. This is a fundamental and paradigm shift in the marketing philosophy," he said.
Over the past 10 months, Capital Food's instant noodles category has grown by 75% to Rs44 crore and is set to achieve a 20% market share over the next two years, he said.
The company has four manufacturing units across the country and has a total employee strength of around 1,100.