MUMBAI:
UTI Mastershare Unit Scheme, India’s first equity oriented scheme declares dividend (gross distributable amount) of 27% (Re.2.70 per unit on face value of Rs.10) under dividend option- regular plan and 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 November 15, 2018.
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 November 9, 2018 under dividend option-regular plan was Rs.32.9688 and under dividend option-direct plan was Rs.34.3292.
UTI Mastershare Unit Scheme, the first diversified equity mutual fund scheme of the country was launched in October 1986 and it has completed 32 years of Wealth Creation. UTI Mastershare has a track record of 32 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.5314 crore (as on October 31, 2018) and 5.70 lakh investor accounts (as October 31, 2018). 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, ITC Ltd, Tech Mahindra, Larsen & Toubro Ltd, Indus Ind Bank, , Kotak Mahindra Bank, Axis Bank etc (as on October 31, 2018).
Top 10 stocks account for over 48% of the portfolio. The Scheme is currently overweight on private sector banks, rural facing Non Banking Finance Companies (NBFC), Information Technology, Industrial Manufacturing and underweight on Energy, Consumer, and Metals.
An investment of Rs.10 lakhs in September 1986 in UTI Mastershare is worth Rs.7.58 crores as of October 31, 2018 (considering all the rights, bonuses and dividends) as against Rs.6.84 crores as per benchmark-S&P BSE 100 TRI. The scheme has generated 75 times returns in the last 32 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.
Swati Kulkarni, Executive Vice President and Fund Manager, UTI AMC, said, “UTI Mastershare Unit Scheme predominantly invests in large cap companies having competitive advantage in their respective fields. It follows an investment style of Growth at Reasonable Price (GARP) for stock picking. That means, given the underlying growth in earnings of a company, how much is the reasonable price that one should pay to buy that stock in the portfolio. This approach gives it a framework to buy companies having future earnings growth as well as valuation comfort.
The competitive franchise that UTI Mastershare Unit Scheme 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. Typically such companies enjoy pricing power for a long period of time.”
