5 February 2006
Bonanza For Investors - UTI -Services Sector Fund Declares Tax-Free Dividend Of 101%
UTI-Growth Sector Fund-Services (UTI-GSF-Services) declares tax-free dividend @101% (Rs.10.10 per unit on face value of Rs.10/-). The record date for the dividend is February 8, 2006.
All unit holders registered under the dividend option of UTI-GSF-Services as on February 8, 2006 will be eligible for this dividend. Also investors who join the dividend option of the scheme on or before the record date will be eligible for the dividend.
During the calendar year 2004 the scheme had declared dividend totaling to 70% (Rs.7.00 per unit on face value of Rs.10).
The NAV as on January 16, 2006 under dividend option was Rs.36.96 (Post dividend distribution, NAV will fall to the extent of the pay out).
Scheme Performance as on December 30, 2005(NAV-Rs. 36.77)
Performance Comparison with Benchmark Index:
Compounded Annualized Return Over last one year NAV 44.42%, CNX Service Sector Index 36.79%. Over last three years NAV 52.16%. CNX Service Sector Index 40.83%. Over last five years NAV 20.45%. CNX Service Sector Index 15.68%. Compounded Annualized Return Since Inception NAV 35.90%. CNX Service Sector Index 21.14%.
Assuming that all pay outs / bonus during the period have been reinvested in units of the scheme at the immediate ex-dividend NAV
Past Performance may or may not be sustained in the future.
The scheme has consistently outperformed the benchmark index and has delivered a return of 44.42% over the last one year as compared to the benchmark return of 36.79%.
UTI -GSF- Services was launched in May 1999 as an open-ended equity scheme.
Investment objective of the scheme is to provide investors the benefits of capital appreciation and income distribution through investments in equities and equity related instruments of companies engaged in the business of banking, finance & insurance, education & training, telecom services, travel & tourism, leisure & entertainment, transportation etc.
Shri U K Sinha, Chairman and Managing Director, UTI AMC said, ” The services sector pie continues to dominate the GDP growth and UTI’s Service Sector Fund provides an ideal investment mechanism to benefit from the India growth story.”
Shri A K Sridhar, Chief Investment Officer, UTI AMC said, “The present dividend is in line with UTI MF’s core philosophy of rewarding its investors whenever market offers such opportunities.”
Ms Gautami Desai the Fund Manager of UTI-GSF-Service said, ” With a high sustained growth in trade, power, hotels, finance, banking, technology, transport and communication, UTI Service Sector Fund provides an opportunity to investors to share this growth.”
UTI Mutual Fund is a SEBI registered mutual fund whose Sponsors are State Bank of India, Punjab National Bank, Bank of Baroda & Life Insurance Corporation of India.
UTI Mutual Fund is the largest mutual fund in the country with assets under management of over Rs.25200 crore and investor accounts of over 6.80 million under its 55 domestic schemes (as of December 31, 2005).