Ride the short-term volatility with arbitrage funds

Arbitrage category of funds are witnessing renewed interest from investors on account of higher market volatility. Investors use arbitrage fund to park their short-term surplus aiming capital appreciation with minimal risk, periodic income and tax arbitrage. The fully hedged equity portfolio looks out for better arbitrage opportunities and keeps risk of any directional equity calls away.

UTI Arbitrage Fund is one among the early generation of arbitrage funds which was launched in 2006 and now has a 13-year track record spanning across different market cycles. The fund has exhibited decent performance besides paying monthly dividend under its regular and direct plans . The fund has delivered average return of 6.51% (rolling returns) on 6 months daily basis under its regular-growth option (data period: August 2014 to August 2019). During the same period the fund has generated return in the range of 4.95% (Min) to 9.37% ( maximum) on 6 months daily rolling basis without any instances of negative returns . On compounded annual growth basis, the fund has delivered in excess of 6.15% under its regular plan and 6.70 % plus return in direct plan on 1/3/5  year basis. (data as of August 2019)

The fund being equity oriented enjoys certain tax arbitrage (in respect of capital gains tax and dividend distribution) compared to other debt investment avenues. The fund has a reasonable track record of monthly dividend distribution. The periodic income in the form of dividend can help investors plan out their finances in a holistic manner. The NAV appreciation in addition to this adds to overall return.

In the current market environment where there is higher risk aversion on account of credit issue & market volatility, arbitrage funds can provide a relatively safer investment avenue for short term parking of funds. The fully hedged equity portfolio takes the worry off for the investor and targets higher yield from arbitrage opportunities. On debt side, the fund manager focuses on quality debt instruments (such as AAA , A1+) with low duration of 175-200 days.

UTI Arbitrage Fund can be a good investment option given its track record. Notably, the fund has grown up significantly in size i.e.  from an AUM of 1170 Crs in August 2018 to 2400 crores as on 5th September 2019.

UTI Equity Fund declares dividend

(Gross Distributable Amount-30%)

UTI Equity Fund declares dividend (gross distributable amount) of 30% (Re.3.00 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 August 5, 2019. 

All unit holders registered under the dividend option-regular plan and dividend option- direct plan of UTI Equity Fund  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 Equity Fund on July 29, 2019 under dividend option-regular plan was Rs.99.2097 and under dividend option-direct plan was Rs.102.0916.             .

UTI Equity Fund was launched in May 1992 and has completed 27 years of Wealth Creation.  The  Scheme has withstood the changing weather of the Indian economy, from liberalization to digitization.

UTI Equity Fund is an open ended equity scheme investing across large cap, midcap and small cap stocks. The primary objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related securities of companies across the market capitalization  spectrum. However there can be no assurance or guarantee that the investment objective of the scheme would be achieved.

Mr Ajay Tyagi is the fund manager of the scheme.

About UTI Mutual Fund

UTI Mutual Fund is a SEBI registered mutual fund whose Sponsors are State Bank of India, Punjab National Bank, Bank of   Baroda   and Life Insurance Corporation of India.

UTI Mutual Fund is one of the largest mutual funds in India with investor accounts of over 1 crore under its  187   domestic schemes / plans as on June 30, 2019.

Mumbai

July 31, 2019

UTI Value Opportunities Fund declares dividend

(Gross Distributable Amount-11%)

UTI Value Opportunities Fund declares dividend (gross distributable amount) of 11% (Re.1.10 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 July 24, 2019.

All unit holders registered under the dividend option-regular plan and dividend option- direct plan of UTI Value Opportunities Fund  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 Value Opportunities Fund on July 18, 2019 under dividend option-regular plan was Rs.18.6341 and under dividend option-direct plan was Rs.21.6969. 

UTI Value Opportunities Fund is an open-ended equity scheme following value investment strategy. The primary objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related securities of companies across market capitalization spectrum. However there can be no assurance or guarantee that the investment objective of the scheme would be achieved. 

Mr Vetri Subramaniam and Mr Amit Premchandani   are the fund managers of the scheme. 

About UTI Mutual Fund 

UTI Mutual Fund is a SEBI registered mutual fund whose Sponsors are State Bank of India, Punjab National Bank, Bank of   Baroda   and Life Insurance Corporation of India.

UTI Mutual Fund is one of the largest mutual funds in India with investor accounts of over 1 crore under its  187   domestic schemes / plans as on June 30, 2019.

Mumbai

July 22, 2019 

Registered Office: UTI Tower, ‘Gn’ Block, Bandra - Kurla Complex, Bandra (E), Mumbai - 400 051. Phone : 022-66786666. For more information please contact the nearest UTI Financial Centre or your AMFI/NISM certified UTI Mutual Fund independent Financial Advisor (IFA) for a copy of Statement of Additional Information, Scheme Information Document and Key Information Memorandum cum Application Form. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully

UTI Value Opportunities Fund declares dividend (Gross Distributable Amount-11%)

UTI Value Opportunities Fund declares dividend (gross distributable amount) of 11% (Re.1.10 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 July 24, 2019.

All unit holders registered under the dividend option-regular plan and dividend option- direct plan of UTI Value Opportunities Fund  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 Value Opportunities Fund on July 18, 2019 under dividend option-regular plan was Rs.18.6341 and under dividend option-direct plan was Rs.21.6969.

UTI Value Opportunities Fund is an open-ended equity scheme following value investment strategy. The primary objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related securities of companies across market capitalization spectrum. However there can be no assurance or guarantee that the investment objective of the scheme would be achieved.

Mr Vetri Subramaniam and Mr Amit Premchandani   are the fund managers of the scheme.

About UTI Mutual Fund

UTI Mutual Fund is a SEBI registered mutual fund whose Sponsors are State Bank of India, Punjab National Bank, Bank of   Baroda   and Life Insurance Corporation of India.

UTI Mutual Fund is one of the largest mutual funds in India with investor accounts of over 1 crore under its  187   domestic schemes / plans as on June 30, 2019.

Mumbai

July 19, 2019

UTI Master Equity Plan Unit Scheme declares dividend

(Gross Distributable Amount-10%)

UTI Master Equity Plan Unit Scheme (UTI-MEPUS) declares dividend (gross distributable amount) of 10% (Re.1.00 per unit on face value of Rs.10).

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 scheme would fall to the extent of payout and statutory levy (if applicable).

The record date for the dividend is April 11, 2019. 

The NAV of UTI-MEPUS on April 5, 2019  was Rs.110.8423.

UTI-MEPUS came into existence in March 2003 as a closed-ended equity oriented scheme as a consequence of merger of 5 MEP schemes viz. MEP- 93, MEP- 94,MEP-95, MEP-96 and MEP-97. The scheme primarily aims at securing for  the members capital appreciation by investing the funds of the scheme in equity shares and convertible/non-convertible bonds/debentures of companies with good growth prospects and money market instruments.

The Fund Manager of the scheme is  Mr. Sanjay Dongre

About UTI Mutual Fund

UTI Mutual Fund is a SEBI registered mutual fund whose Sponsors are State Bank of India, Punjab National Bank, Bank of   Baroda   and Life Insurance Corporation of India.

UTI Mutual Fund is one of the largest mutual funds in India with investor accounts of over 1 crore under its 195 domestic schemes / plans as on March 31, 2019.

Mumbai

April 8, 2019