UTI Variable Investment Scheme declares 14% dividend

Pursuant to the payment of dividend, the NAV of the dividend option of the scheme would fall to the extent of payout and statutory levy if any. The NAV per unit as on November 28, 2006 was Rs.14.6703 under the dividend option.

The record date for the dividend is December 1, 2006. All unitholders registered under the dividend option of UTI Variable Investment Scheme- Index Linked Plan as on December 1, 2006 will be eligible for this dividend. Also investors who join the dividend option of the scheme on or before the record date will be eligible for the dividend.

Considering the income distribution tax, the pay out translates into a dividend of 12.278% (Rs.1.2278 per unit on a face value of Rs.10/-) for individual and HUF investors and of 11.434% (Rs.1.1434 per unit on a face value of Rs.10/-) for other categories of investors.

UTI-VIS-ILP is an open ended scheme with an investment objective to take a contrarian outlook on the equities. The equity allocation of the scheme replicates the BSE Sensex like a passive index fund while the debt investment is made in central government securities, corporate debt with minimum credit rating of 'AA' or equivalent and money market instruments. The assets allocation at various levels of BSE Sensex is laid down in the offer document and is reviewed every year.

The asset allocation under the scheme as on October 31, 2006 was 13.90% in equity and balance 86.10% in debt/central government securities/money market instruments.

Swati Kulkarni fund manager of the scheme said "The Scheme provides an attractive investment avenue for investors who look for a steady long-term return across the equity market cycles with much lower volatility in the Net Asset Value."

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