GIC Growth Plus II to go open-end

MUMBAI, December 17: GIC Mutual Fund is seeking unitholders’ approval to convert GIC Growth Plus II into an open-ended scheme. If the unitholders’ consent comes through, it will be the fifth instance of a closed-end fund being converted into an open-end fund after Mastergain, Garndmaster, Kothari Bluechip and Magnum Multiplier 90.

Launched in February 1994, Growth Plus II had an initial corpus of Rs 198.39 crore from 24,000 unitholders. A closed-end fund, to be redeemed in 2000, its current NAV is Rs 8.98. The fund has been repurchasing the units with the current repurchase price being Rs 8.53, at a five per cent discount to its NAV.

One the scheme goes open-ended the repurchase price will be at a discount of three per cent to NAV as against five per cent now. This will help investors exit at a better price. The fund is going in for a postal ballot to change the terms of the scheme.The scheme, which is listed on the markets, are not frequently traded. The units were last traded on December 11, at a price of Rs 7.50, leaving a gap of Rs 1.48 to its NAV.