UTI MF declares tax-free dividend of 35 pc

MUMBAI: UTI Banking Sector Fund from the UTI MF stable has declared a tax-free dividend of 35 per cent, Rs 3.50 on share of Rs 10 face value each.

Pursuant to the payment of dividend, the Net Asset Value (NAV) of the dividend option of the fund would fall to the extent of payout and statutory levy.

All unit holders registered under the dividend option of UTI Banking Sector Fund as on May 23, will be eligible for the dividend.

Besides, 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 was Rs 18.80 under the dividend option.

UTI Banking Sector Fund is an open-end equity fund and is one of the six funds launched under UTI-Thematic Fund.

UTI MF Fund Manager Gautami Desai said, "The fund is positioned to capitalise opportunities emerging in the banking sector...the economy is near the peak of interest rate cycle and hence the fund is positive on the banking stocks going forward."