UTI formally announces lower dividends for its debt issues - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
  • Home
  • Outlook Arena
  • Jun 7, 1999 - UTI formally announces lower dividends for its debt issues

UTI formally announces lower dividends for its debt issues

Jun 7, 1999

THE Unit Trust of India has signaled a falling interest rate regime by stating formally that the dividends from its debt issues would be lower this year. In a statement to the Economic Times, Mr Sen of the UTI stated that "In general, dividends from all schemes including US64 - its flagship scheme will be lower. There is no reason for the investors to expect higher returns." The recently closed Monthly Income Plan (MIP) '99, which raked in Rs 27 bn, carried an interest rate of 10.75%. The scheme offered investors an assured tax free return of 10.75%, payable monthly during its 5 year tenure. The yield under this option works out to 11.30%. The scheme attracted over 130,000 applications.

Trends in dividend payout have loed investors to believe that UTI will maintain dividends even in a falling market. The statement to the contrary will now definitely affect investor sentiment towards US64, whose dividend is to be announced next month. UTI also lowered the income distribution on all its other MIP schemes launched in 1996 from 12% to 10.75%, hitting investor returns.

Equitymaster requests your view! Post a comment on "UTI formally announces lower dividends for its debt issues". Click here!

  

More Views on News

Sorry! There are no related views on news for this company/sector.

Most Popular

A Critical Update on the Market (Fast Profits Daily)

Mar 30, 2021

In this video, I'll tell you why I am recommending caution in the market at this time.

My Recent Recommendation Will Profit from the Global Supply Chain Crisis (Profit Hunter)

Mar 31, 2021

A tiny chemical company, started in the Licence Raj era, is a great example of a new wealth creating opportunity.

My Stock Trading Strategy (Fast Profits Daily)

Mar 31, 2021

In this video I'll show you exactly how I go about picking stocks for trading.

What You Need to Find Hundred Baggers (Profit Hunter)

Mar 30, 2021

100 baggers of the last decade share this common trait. Here's how to use it to nail future multibaggers.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

MARKET STATS