| "The investment objective of this fund is to provide medium to long term capital gains by investing predominantly in equity and equity related instruments, which offer high dividend yield," said A K Sridhar, chief investment officer, UTI. |
| The initial offer period for the scheme is from April 11 to May 3, 2005. It will reopen for continuous sale and repurchase from June 1 2005 onwards. The face value of units is Rs 10 and the minimum initial investment is Rs 5,000. |
| Commenting on the specification of the fund, Sridhar said it would not keep more than 10 per cent cash on a daily basis as the market is volatile. However, the fund has the freedom to keep a large amount of cash in the first six months. |
| Advocating the high dividend yield scheme, he said that it offers 65 to 100 per cent returns where as other investment schemes give only 0 to 35 per cent return. |
| "The average dividend pay out from companies has moved up from 20 per cent to 25 per cent in financial year 2004. This trend will benefit investors and offer them a growth opportunity," said Rajesh Bhojani, executive of UTI. |
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