UTI MF ties up with BASIX for micro finance
BAXIS is currently working with 1.5 million underprivileged people of whom 90 per cent are from rural poor households and about 10 per cent are urban slum dwellers.
By Saikat Das, ET Bureau |
MUMBAI: UTI Asset Management and Invest India Micro Pension Services (IIMPS) have tied up with BASIX for a micro pension scheme.
UTI will offer UTI-Retirement Benefit Pension Fund to customers of BASIX, a Hyderabad-based livelihood promotion institution.
BAXIS is currently working with 1.5 million underprivileged people, 90 per cent of which are from poor rural households and 10 per cent are urban slum dwellers.
IIMPS provides low-cost, secure and scalable mechanism to the working poor to save for their old age. UTI had started the macro finance pension scheme in 2006, in association with SEWA. So far, it has brought a total of 10.25 lakh workers (in unorganized sector) under the scheme.
German government development bank KfW has extended financial grant of 3.40 lakh euros (around Rs.2.2 crore) to IIMPS for scaling its technical support.
���We do not set any target for micro finance scheme. The objective of the scheme is to cater to the downtrodden working in the unorganized sector across the nation, especially in remote places. Through this scheme we want to secure their post retirement life. The strategic partnership will further help intensify our efforts in that direction,��� said U K Sinha, Chairman and Managing Director, UTI Asset Management Company.
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Investment in UTI-Retirement Benefit Pension Fund starts at a minimum Rs 50 per month and in multiples thereof. The scheme invests 60 per cent of its corpus in fixed income instruments and can take maximum 40 per cent exposure in equities. Its current exposure to equities is 23 per cent due to volatile market conditions.Going by a CAGR of over 11 per cent since its launch in 2006, if one invests Rs 200 a month from the age of 18, he / she will get around Rs 19,40,000 by the age of 58 when the scheme expires. However, one can opt for redemption in monthly tranches, which additionally gives interest on the maturity amount.
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