UTI does it again! After the great fiasco of US 64, UTI is again doing what it does best, that is " to abandon its investors without any warning".
In 1993, UTI launched the SCUP " Senior Citizens Unit Plan" which promised great medical coverage to its investors ( husband and wife couples) when they reach the age of 58 .....plus a whole lot of benefits after the age of 61 ( some annuity ...wouldn’t u like that too ?) . But before a majority of the investors manage to reach that age and start developing any illness that require hospitalisation, UTI SCUP SCHEME itself has collapsed in sudden death. What a sterling fund performance!!
I received the notice of termination yesterday. It is very well worded as most mutual fund documents are. However, the basic thrust of the letter is this..... we collectively at the UTI ( because we can’t find that one idiot who envisaged this stupid scheme) made some lofty plans to cover your and your wife’s old age hospitalisation bills, but u see... the markets didn’t give us the returns that our guys projected way back in 1993 ( They didn’t know their math very well, u know how we butchered the US 64) .....
so we are terribly sorry, but we have to terminate the SCUP 93 otherwise we can’t afford to pay ourselves those fat salaries, u can take your moneyback u old disposable fogey, and go to the New India Assurance company and buy medical insurance on an annual basis like any other citizen in the country does...u should be happy that u are getting nearly 5 times your one-time investment after 14 years of trusting us, it has appreciated quite well after subtracting our fees and perks, but not too well because we invested them all in ...guess what...only UTI financial products.... How is your cough by the way..we hope it is not too bad, anyway in India we don’t really need medical insurance for old age, because we have a tradition where the children look after their parents right upto death. Before we say good bye, can we ask u this question that our young fund managers who now know their math quite well, after having made plenty mistakes....what are u going to do with the redemption amount that we are going to return to u, have u heard of a large number of our new financial products .....very good projections for the future.... If u are already dead don’t call us.