Pioneer ITI Mutual Fund has announced bonus under the bonus plans of its five debt funds namely, Income Builder Account (IBA), Monthly Income Plan (MIP), Treasury Management Account (TMA), Short-term Income Plan and Gilt Investment Plan.
Under IBA, a bonus in the ratio of 13:1000 has been declared. Whereas, in MIP, a bonus in the ratio of 8.5:1000 and in Gilt Investment Plan, a bonus in the ratio of 7:1000 has been announced. The record date for the declaration of bonus in each of the three plans is July 26, 2002.
In Short-term Income Plan, a bonus in the ratio of 1.45:1000 and in TMA, a bonus in the ratio of 2:1000 has been declared. The record date for the same is July 29, 2002 for both the funds.
Pioneer ITI, which has recently been acquired by Franklin Templeton Investments has introduced the bonus option in addition to the existing growth and dividend options of these schemes. A bonus option works out to be a low-risk, tax-efficient investment to manage short-term and long-term capital gain tax liability, wherein the distributable profits of the fund are capitalised in the form of bonus units. The first fund to offer such an option was JM Mutual fund, which introduced this in its open-ended Income Fund in March 2002