UTI Mastershare Unit Scheme, India’s first equity oriented fund declares tax-free dividend of 35% (Re.3.50 per unit on face value of Rs.10) under dividend option-existing plan and dividend option –direct plan. Pursuant to the payment of dividend, the NAV of the dividend option-existing plan and dividend option-direct plan of the scheme would fall to the extent of payout.
The record date for the dividend is October 16, 2017.
All unit holders registered under the dividend option-existing 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 -existing 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 10, 2017 under dividend option-existing plan was Rs. 34.9446 and under dividend option-direct plan was Rs.35.9274.
UTI Mastershare Unit Scheme, the first diversified equity mutual fund scheme of the country was launched in October 1986 and it has completed over 30 years of Wealth Creation. UTI Mastershare has a track record of 31 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 oriented scheme having a corpus of Rs. 4516 crore (as on September 30, 2017) and 5.40 lakh investor accounts (as September 30, 2017). The scheme aims at securing for the unitholders capital appreciation by investing the funds of the scheme in equity shares, equity related instruments and fully convertible bonds/debentures of companies. Investment may also be made in issue of partly convertible debentures/bonds including those issued on rights basis subject to the condition that, as far as possible, the non-convertible portion of the debentures/bonds so acquired or subscribed shall be disinvested within a period of 12 months from the date of acquisition.
UTI Mastershare is a predominantly large-cap focused fund. The scheme’s top holding consist of well known and researched companies like HDFC Bank, , Infosys, ICICI Bank, Kotak Mahindra Bank, Maruti Suzuki India, Indus Ind Bank, TCS, Tata Motors, Mahindra & Mahindra, and L&T. Scheme has a well disciplined investment criterion in sector/stock allocation and number of stocks. The Scheme is overweight on Retail Private sector banks, rural focused Non Banking Financial Company (NBFC), Industrial Manufacturing, Cement and underweight on Consumer, Metals and Telecom.
An investment of Rs.10 lakhs in September 1986 in UTI Mastershare is worth Rs.7.26 crores as of September 30, 2017 (considering all the rights, bonuses and dividends) as against Rs.5.52 crores as per benchmark-S&P BSE 100. The scheme has generated 72 times returns in the last 31 years. UTI Mastershare has an efficient expense structure on account of a large corpus and a lower portfolio turnover ratio which in turn provides scope for superior risk adjusted returns.
Ms. Swati Kulkarni, Executive Vice President and Fund Manager, UTI AMC, said, “UTI Mastershare invests predominantly in companies with large market capitalization. Often, these large cap companies generate strong and sustainable cash flows, have cost advantage due to size and enjoy leading position in the market. The Fund’s investment style hinges on Growth At Reasonable Price (GARP) principle, a combination of growth and value investing. Companies having sustainable earnings growth and yet not quoting at very high valuations are preferred by the fund. For this purpose, the fund analyses companies’ valuation within the sector and/ or vis a vis their own historic valuation with due consideration to the expected revenue growth catalysts, margin trends and profit growth. UTI Mastershare maintains a well-diversified portfolio and avoids sector as well as stock concentration at all points of time. This has helped the Fund in generating steady returns and has helped the fund to weather the market phases effectively in the past.”