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UTI Launches Dividend Yield Fund

UTI Mutual Fund has launched a dividend yield fund. The fund aims to provide medium to long-term capital gains and/or dividend distribution by investing predominantly in equity and equity-related instruments offering high dividend yield. It would consider the dividend yield of a security to be high if it's greater than the dividend yield of the Nifty.

An open-end equity-oriented scheme benchmarked against BSE 100, UTI-Dividend Yield Fund's IPO would open on April 11, 2005, and continue till May 3, 2005. The scheme would re-open for continuous sales and repurchase from June 1, 2005, onwards. Vinay Kulkarni would manage the fund.

The scheme would charge an entry load of 2.25 per cent on any investment below 25 lakh and 0.50 per cent on investment ranging between 25 lakh to 2 crore. The entry load would be applicable during the IPO period as well. The minimum investment has been fixed at Rs 5,000.

It would be the fourth such fund in India. Already, investors have choice to invest in Tata Dividend Yield, Birla Dividend Yield Plus and Principal Dividend Yield funds.