However, UTI has not yet introduced this system in its popular US-64 scheme.

Currently, the NAVs are computed on historic basis for 20 of these schemes. For applications received on holidays, the sale and re-purchase prices will be based on NAV as on the next working day of the Trust at Mumbai. If an application is received today up to 2 pm, the sale and repurchase price would be based on the NAV computed as on November 29, 1999.

According to an official from UTI, the step of pricing the sale and purchase of units of equity-oriented schemes on a daily basis is in line with the international practices and has beentaken to benefit all existing investors.

The NAV of master index fund is already computed on a prospective basis. For sales and repurchase applications received up to November 28, the prices would continue to be based on historic NAVs as hitherto.

``UTI has finally realised that the system of historic pricing was causing losses to its large base of long-term, retail investors, whereas while it provided a golden opportunity to short-term traders and investors to earn a quick buck. This anomaly has now been corrected,'' said an analyst. The funds where units will be sold under the new pricing policy are Masterplus '91, Mastergain '92, Grandmaster '93, Primary Equity Fund, UGS 10000, UTI Growth Sector Funds - Brand Value Fund, Petro Fund, Services Sector Fund, Pharma Fund and Software Fund. UTI already has a daily pricing mechanism in its index fund. The funds, where repurchase will be under the new pricing policy are UGS 2000, UGS 5000, Master Equity Plans (the equity linked saving schemes) of 1991 to 1996,US '92 and Equity Opportunity Fund.

Under historic pricing, units are sold at a price linked to `historic' or old NAV. For instance, units of Fund A are sold on November 30 based on the NAV of say, November 28. The normal time lag in the case of most UTI schemes was four days which was later reduced to two days. In the case of its interval fund, UGS 10000, pricing was based on a seven-day old NAV which was later reduced after short-term investors reaped a windfall in the post-budget period this year.

It may be recalled that units of UGS 10000 were sold at a pre-budget NAV in the first week of March whereas the market had already shot up by around 400 points after the presentation of the budget.