UTI Banking Sector Fund declares tax-free dividend of 35%

UTI Banking Sector Fund declares tax-free dividend of 35% (Rs.3.50 per unit on face value of Rs.10/-). Pursuant to the payment of dividend, the NAV of the dividend option of the fund would fall to the extent of payout and statutory levy if any.

The record date for the dividend is May 23, 2007.

All unitholders registered under the dividend option of UTI Banking Sector Fund as on May 23, 2007 will be eligible for this dividend. Also investors who join the dividend option of the fund on or before the record date will be eligible for the dividend.

The NAV per unit as on May 17, 2007 was Rs.18.80 under the dividend option.

UTI Banking Sector Fund, an open-end equity fund, is one of the six funds launched under UTI -Thematic Fund. The investment objective of UTI Banking Sector Fund is to provide investors the benefits of capital appreciation and income distribution by investing in stocks of companies/institutions engaged in the banking and financial services activities.

Ms Gautami Desai, Fund Manager of UTI Banking Sector Fund said "The fund is positioned to capitalise opportunities emerging in the banking sector. In the event of rising interest rate scenario, the banking sector has demonsrtated a strong price power which has helped them in maintaining margins. The economy is near the peak of interest rate cycle and hence the fund is positive on the Banking stocks going forward."

Disclaimer: All investments in Mutual Funds and securities are subject to market risks and the NAV of funds may go up or down depending on the factors and forces affecting the securities markets. Please read the Offer Document carefully before investing.

Source : Equity Bulls

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