Distribution of above dividends are subject to the availability of distributable surplus as on record date.
UTI Mastershare Unit Scheme, India’s first equity oriented scheme, declared dividend (gross distributable amount) of 26% (Re.2.60 per unit on face value of Rs.10) under dividend option-regular plan and dividend (gross distributable amount) of 15% (Re1.50 per unit on face value of Rs.10) under dividend option –direct plan.
Distribution of above dividends are subject to the availability of distributable surplus as on record date. Dividend payout to the investor will be lower to the extent of Dividend Distribution Tax.
Pursuant to the payment of dividend, the NAV of the dividend option-regular plan and dividend option-direct plan of the scheme would fall to the extent of payout and statutory levy (if applicable).
The record date for the dividend is October 17, 2019.
All unit holders registered under the dividend option-regular plan and dividend option- direct plan of UTI Mastershare Unit Scheme as on the record date will be eligible for this dividend. Also investors who join the dividend option -regular plan and dividend option-direct plan of the scheme on or before the cut off time of the record date will be eligible for the dividend.
The NAV of UTI Mastershare Unit Scheme on October 11, 2019 under dividend option-regular plan was Rs.31.7537 and under dividend option-direct plan was Rs.33.4266. .
UTI Mastershare Unit Scheme, the first diversified equity mutual fund scheme of the country was launched in October 1986 and it has completed 33 years of Wealth Creation. UTI Mastershare has a track record of 33 years of uninterrupted dividend distribution across all market cycles- be it bearish or bullish. The scheme has also rewarded investors with bonus and rights on many occasions.
This scheme is an open ended equity scheme having a corpus of Rs.6133 crore (as on September 30, 2018) and around 5.99 lakh investor accounts (as September 30, 2019). UTI-Mastershare Unit Scheme is a Large Cap Fund. The objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related securities of large cap companies. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.
UTI Mastershare Unit Scheme has a portfolio of leading well-known companies such as, HDFC Bank, ICICI Bank, Infosys, Tata Consultancy Services, HDFC Ltd, Axis Bank, Larsen & Toubro Ltd, Bharti Airtel Ltd, Kotak Mahindra Bank, Tech Mahindra Ltd etc (as on September 30, 2019). Top 10 stocks account for over 51% of the portfolio. The Scheme is currently overweight on private sector banks, Information Technology, Industrial Manufacturing and underweight on Energy, Financial Services and Consumer Goods.
Swati Kulkarni, Executive Vice President and Fund Manager, UTI AMC, said “UTI Mastershare Unit Scheme is a large cap-oriented fund investing more than 80% of the funds in India’s top 100 companies in terms of market capitalization. Most large cap companies have resilient business models that not only enables them to invest for sustained growth but also to handle challenging business times better based on sound financials and management bandwidth. Typically, they enjoy leading position and scale benefits. In past they have delivered good compounding returns over long term. “
“We follow Growth At Reasonable Price Investment style- This approach helps us identify companies where we believe that the market is underestimating the long growth runway or where the market is ignoring the possible improvements in business. We use a macro overlay i.e. the top down approach to decide which sectors we want to stay overweight and which we want to go underweight and then select stocks which are likely to perform better based on our inhouse research inputs. Our focus is to choose companies that enjoy the benefits of competitive franchise. Typically, such companies enjoy pricing power or cost advantage which results in strong financials. The competitive franchise that the portfolio looks for is built over a long period of time by companies that are fundamentally strong with control on borrowings, consistent revenue growth, focus on profitability and higher return on capital than cost of capital and consistent operating cash-flows generation. Such companies generate free cash flows for future expansion and avoid dilution of existing shares.” she added