UTI Mutual Fund declares 35 pc tax-free dividend

Mumbai, May 18: UTI Mutual Fund today declared a 35 percent tax-free dividend to investors.

Unit holders registered under the dividend option of UTI banking sector fund as on May 23 and investors who join the dividend option on or before the record rate (May 23) will be eligible for dividend, said a UTI release here.

''The fund is positioned to capitalise opportunities in the emerging banking sector. In the event of rising interest rates, the banking sector has demonstrated a strong price power which has helped them in maintaining margins,'' the release said.

The economy is nearing the peak of interest rate cycle and hence the fund is positive on the banking stocks going forward, UTI Fund manager Gautami Desai said in the statement.

The net asset value (NAV) per unit as on May 17 is Rs 18.80 under the dividend option.

UTI Mutual fund is a SEBI-registered mutual fund with leading public sector banks State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation of India as its sponsors.

UNI