Mumbai: Unit Trust of India (UTI) said that the reforms package and financial assistance of over Rs 14,600 crore announced by the government will help meet investors' expectations, reinforce confidence in the largest fund manager and provide a positive trigger to stock market.

The comprehensive package cleared by the government shows its commitment to stand by the assurances given by UTI to the investors, its chairman M Damodaran said while responding to the package programme.

Asked about splitting of fund into two companies-US-64 plus assured schemes and Net asset value-based schemes-Damodaran said at present many NAV-based schemes of UTI have been doing much better than the competitors from the private sector especially the sectoral funds like petro and software.

UTI executive director B S Pandit said that the package for flagship US-64 and likely tax concessions would provide the investors necessary incentive to remain with the scheme beyond May 2003.

Another executive director D S R Murthy said that assured assistance would make a difference to the market, which was apprehensive due to uncertainties and selling pressure.

Association of Mutual Funds in India (AMFI) chairman A Kurien said that the package has addressed the immediate worries of the investors who had reposed faith in UTI, specially senior citizens who had invested their savings in assured schemes.

PTI