The UTI Dividend Yield Fund is a diversified equity mutual that invests predominantly in equity and equity related investments to offer mid to long term growth opportunities to investors. It has been operational since May 2005.
Type of fund
This is an open ended diversified equity mutual fund scheme.
Investment objective
The objective here is to offer medium and long term capital gains and/or dividend distribution through investments primarily in equity and related instruments that offer high dividend yield. The diversified portfolio helps in reducing risk and offering good returns.
Fund information
| Inception date | 03/05/2005 |
| CRISIL rank | Rank 5 in Infrastructure sector funds |
| Schemes |
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| Entry load | 0% |
| Exit load | 1% if redeemed within 1 year |
| Minimum investment |
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| SIP | Available. |
| Product label – Risk and target investors | Moderately high risk. Meant for long term investors looking at capital gain and dividend yield through equity and related instruments’ based investments. Diversified large-mid cap oriented fund having conservative-type funds is ideal for all types of equity investors. |
| Benchmark | S&P BSE 100. This index was compiled in 1989 and uses the same methodology of computation of Free-Float index and determination of free-float factors as the more commonly known BSE Sensex index. |
| SWP | Yes. Minimum withdrawal amount of Rs.1,000. |
| STP | Available |
| Redemption | Proceeds to be dispatched within 10 days |
| Taxation (on investment and on redemption) | As per applicable sections under the Income Tax Act. |
Fund manager(s)
Ms Swati Kulkarni has a bachelor’s degree in Commerce and master’s in Financial Management from NMIMS. She has CFA charter as well as CAIIB qualification. She has over 20 years of professional experience, with 19 years spent at UTI AMC. She has previously worked with Reliance Industries Ltd and recognized as one of top 3 fund managers in India in 2010. She holds the position of Executive Vice President and Fund Manager – Equities in UTI AMC.
Investment philosophy
This fund aims to provide long term capital appreciation to investors. The fund invests predominantly in high dividend yielding equity instruments. Investors should always consult with their personal financial advisors regarding mutual fund investments. Capital gains and dividend distribution is achieved through investments in equities of companies that give high dividend yield.
Portfolio – Sector / Top 10 holdings*
| Name | Sector | Class | Allocation (%) |
| Infosys Ltd | Tech | Equity | 7.18 |
| Axis bank Ltd | Financial | Equity | 5.14 |
| ICICI Bank Ltd | Financial | Equity | 5.06 |
| TCS Ltd | Tech | Equity | 4.12 |
| HDFC Bank Ltd | Financial | Equity | 3.94 |
| Bharat Forge Ltd | Auto | Equity | 3.16 |
| State Bank of India Ltd | Financial | Equity | 3.14 |
| Cummins India Ltd | Engineering | Equity | 3.10 |
| Hero Motocorp Ltd | Auto | Equity | 2.98 |
| Great Eastern Shipping Company Ltd | Services | Equity | 2.87 Â |
*As on 31st July 2015
Risk measures
| Standard Deviation | 14.83% |
| Sharpe Ratio | 0.56 |
| Alpha | 0.40% |
| Beta | 0.96 |
Performance
| AUM* | Rs.3,061 crores (Growth) |
| NAV** |
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| Expense Ratio |
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*As on 30th June 2015
**As on 4th September 2015
Benchmark comparison*
| Compounded Annualised Returns | Scheme Returns (%) | Benchmark Returns (%) |
| Returns for last 1 year | 7.75 | 9.32 |
| Returns for last 3 years | 14.65 | 17.04 |
| Returns for last 5 years | 9.65 | 9.09 |
| Returns since inception | 16.49 | 15.59 |
*As on 30th June 2015
Expert view of the fund
The UTI Dividend Yield Fund falls in the sparsely populated dividend yield category of funds which fall within the equity mutual fund class. The scheme invests in companies showing large dividend yields and is categorized as medium to high risk. The fund has performed close to benchmark returns for long term investors, however its returns in the past few years have not be up to mark. As such long term investors looking for high dividend yield investments are ideal for this fund. You should always consult with your personal financial advisor before investing in mutual funds.
How to apply
Investors can take both the online and offline route to invest in UTI Dividend Yield Fund.
- Online
Online investors can log into the official website of UTI MF and access the application portal. The application forms will be made available online and have to be filled and submitted. Online applications can also be made through the mobile platform once you register with the ECS/Standing Instructions facility. Once all the formalities are completed, you can go ahead with your investments and make payments through multiple avenues. You may also take the services of third party dealers and distributors after due considerations.
- Offline
For investors looking to apply offline in one of the UTI AMC branches, they need to approach the branch and fill up forms and additional documents as required by the fund house. You can also download the application and other forms online, fill them up and submit to the nearest UTI AMC branch. Alternatively, some third party dealers may also offer help in the registration process. You can approach them if you are sure about their credentials.
