Being an open-ended fund, it invests in equity and equity-related securities of companies that have a high dividend yield. The fund aims to maximize investor wealth as well as yield dividends over a long-term horizon. This scheme does not guarantee any assured returns.
UTI Dividend Yield Fund provides these benefits
- Proper management, regular cash flow, and an opportunity to make money by investing in companies with growth potential.
- The fund manager has a diverse diversity in industries and market capitalization.
- With a strong record of success, the fund beat the benchmark in a 5-year cycle and beat the group over a 3-year time horizon.
Dividend Yield Fund
- 98.86 percent exposure to Indian stocks.
- 59.68 percent in large-cap stocks
- 26.08 percent in midcap stocks
- 12 percent in small-cap.
Essential details of UTI Dividend Yield Fund
- On 3 May 2005, UTI Mutual Fund launched the UTI Dividend Yield Fund.
- The UTI Dividend Yield Fund, being a thematic fund, is a moderately high-risk bet and ideal for investors with long-term investment duration of more than five years.
- The fund houses will repurchase/buyback the units. Under normal circumstances, the fund house must send the redemption proceeds within ten business days from the date of submitting the request.
- The UTI Dividend Yield Fund is managed by Mrs. Swati Kulkarni, who has almost 26 years of experience with UTI Mutual Funds since December 2005. She had associations with Reliance Industries Ltd. before joining the fund business.
- The fund house does not bear any entry load for investment in UTI Dividend Yield Fund. However, for unit redemption within 365 days from the date of allotment, an entry load of 1% is charged.
Note: what’s the risk?
Every investment comes with a risk. Risk is the uncertainty or fluctuation in the price (and returns) of the investment. High Risk = High Potential Return Usually Low Risk = Stable, relatively low yields.
What are the tax benefits of investing in UTI Equity Fund?
Short-term capital gains earned on the sale of units within one year of the allocation date will be taxed at the rate of 15%. Long-term capital gains made on the sale of units after one year from the date of allotment, above and above Rs 1 lakh, will be taxed at the rate of 10 percent (without indexing).
UTI Asset Management Company Limited manages UTI Mutual Funds. Established on 14 November 2002, AMC began operating in the investment domain as of 1 February 2003. The fund is striving to provide an efficient combination of industry leadership in capital markets combined with state-of-the-art technical capabilities. An investment strategy is attempted to match the risk-return needs of the customers.
Investors have an awareness of macro trends and prefer to place targeted bets for higher returns relative to other equity funds. At the same time, even if the overall market is outperforming, these investors should also be prepared for the possibility of moderate to high losses on their investments.