UTI Mutual Fund has declared income distribution @12% (i.e. Rs. 1.20 per unit on face value of Rs. 10) in UTI GSF-Petro Fund. The dividend shall be distributed to all the unit holders whose names appear in the books as on 25 June 2003 which is also the record date.
Assuming the investor stayed in the scheme after the scheme has given a bonus of 1:2 in July 2002, the effective dividend for the investor works out to 18%. The dividend is tax-free for the investors, so the post-tax return for the investors works out to be much higher.
The scheme has provided returns to its investors through capital appreciation as well as income distribution time and again viz. @12% in December 2000, @15% in March 2002 and 1:2 bonus units in July 2002.
The NAV of the Fund as on 6 June 2003 is Rs. 15.92 per unit. The Fund has consistently outperformed the benchmark since its inception as follows.
| Change as on 6 June 2003 |
NAV |
BSE SENSEX |
|
Over last one year |
31.54% |
1.46% |
|
Over last three year |
34.17% |
-10.49% |
|
Since Inception |
30.68% |
-5.67% |
UTI GSF-Petro Fund, launched in June 1999, aims to provide returns to investors through capital appreciation with dividend distribution by investing in industries such as oil and gas drilling and exploration, refining of crude oil, distribution of oil, gas, petro products, pipelines and manufacturing of downstream oil products. The only scheme of its kind, it is dedicated to investment in the stocks of Petro sector.
Since February 2002, the sector has seen a number of developments such as dismantling of Administered Pricing Mechanism (APM), new discoveries of gas and oil reserves, investment by Indian companies in oil equity overseas, mergers and acquisitions and government's decision to disinvest its holding in some of the major oil PSU's. The deregulation of petro-product prices is expected to continue to drive the earnings of the companies in the sector.
The Fund has been identifying growth stocks in the sector and has been timing its investments at the most opportune time. This strategy has paid off till now and has helped in giving the performance that it has in the last one year. The deregulation of the oil sector has unlocked the value in many of the stocks in the sector.
The decision of the Government to take up the disinvestment of the major oil PSU's simultaneously has further boosted valuations. The correct anticipation of these events has also contributed to the success of the Fund.
Going forward the Fund will attempt to identify value stocks within the sector that are best placed to benefit from the changing environment within the sector and add them in the portfolio.
Source: www.capitalmarket.com
