Are the fund managers confident of continuing with Mastershares present dividend policy?
We intend to pursue the present dividend policy. We have a reasonable amount of reserves in the fund and this should enable the fund to tide over any cyclical moves of the market. Mastershare’s dividend payouts typically come in September/October every year. But stock market trends over the past six years suggest that stock prices usually appreciate sharply between November and March each year. Do dividend payouts prompt you to book profits on part of your holdings just before the “November effect” kicks in? On the contrary, we normally attract a fair amount of inflows along with the announcement of dividends, which trickles in just before the uptrend that we have seen in the period between November to March over the past ten years. The new investors can ride this rally. We also allow re-investment of dividend under UTI Mastershare and thus the investor has the ability to plough back a tax-free inflow back into equity market What is your outlook for the major indices after the sharp ri
