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Tata
Dividend Yield Fund pays out 4% dividend
February 8, 2005
Tata Dividend Yield Fund
has declared a maiden dividend of 4 per cent per
annum (Rs 0.40 per unit on the face value of Rs
10) in its dividend option.
The Tata Dividend Yield
Fund, an open-ended equity scheme aims to invest
predominantly in shares with dividend yields higher
than that of BSE Sensex at the time of investment.
It endeavours at maximising returns by continuous
focus on a stringent valuation criterion and fundamental
parameters such as management and business competitiveness
and growth prospects of companies.
Since the initial allotment
on November 22, 2004 the NAV of the scheme has
always remained above the par value of Rs 10/-.
This is the maiden dividend declared by the fund
since then. However, past performance may or may
not be sustained in future.
As on February 7, 2005,
the NAV of Tata Dividend Yield Fund (Dividend
Option) was Rs 11.0776.
The record date for the
above dividend was February 7, 2005.
After payment of dividend,
the NAV usually falls to the extent of the payout.
The Tata Dividend Yield
Fund offers two options — dividend option
with minimum investment of Rs 5,000 and in multiples
of Re 1 and growth option with minimum investment
of Rs 5,000 and in multiples of Re 1. There is
no maximum limit for investment.
Features:
- Investment objective:
The investment objective is to provide income
distribution and / or medium to long-term capital
gains by investing predominantly in high dividend
yield stocks.
- Investment pattern:
The scheme aims to invest at least 70 per cent
of its assets in shares with high dividend yields.
Dividend yield will be considered high if it
is greater than the dividend yield of BSE Sensex
that is last released. Remaining 30 per cent
the fund can also invest in equity shares of
companies other than those with high dividend
yield, or in debt and money market instruments
- Investment options:
Dividend and growth. Minimum application —
Rs 5000/- for each option
- Applicable loads:
Entry load (other than SIP*): For each investment
amount <Rs 2 crore: 2.25 per cent. For each
investment amount >= Rs 2 crore: Nil. No
entry load will be charged on investment made
by the Fund of Fund Scheme. For SIP: No entry
load. Exit Load (other than SIP): NIL. Exit
Load for SIP: If redeemed on or before expiry
of 365 days : 2.25 per cent. If redeemed after
365 days Nil. Statutory Details: Constitution:
Tata Mutual Fund has been set up as a trust
under the Indian Trust Act, 1882. Sponsors &
Settlors: Tata Sons Ltd., Tata Investment Corporation
Ltd. Investment Manager: Tata Asset Management
Ltd. Trustee: Tata Trustee Co. Pvt. Ltd.
Risk factors:
- Mutual fund and
securities investments are subject to market
risks and there can be no assurance and no guarantee
that the scheme will achieve its objectives.
- As with any investment
in stocks, shares and securities the NAV of
the units under the scheme can go up or down,
depending upon the factors and forces affecting
the capital market.
- Past performance
of the previous schemes, the sponsors or its
group affiliates is not indicative of and does
not guarantee the future performance of the
scheme.
- Tata Dividend
Yield Fund is only the name of the scheme and
does not in any manner indicate either the quality
of the scheme, its future prospects or the returns.
- The sponsors are
not responsible or liable for any loss resulting
from the operations of the scheme beyond the
initial contribution of Rs1 lakh made by them
towards setting up the mutual fund.
- Investment in
fixed income securities are subject to interest
rate risk, credit risk and liquidity risk.
- Risk associated
with high dividend yield stocks: Though the
investments would be in companies having a track
record of dividend payments, the performance
of the scheme would inter-alia depend on the
ability of these companies to sustain dividends
in future.
- For scheme specific
risk factors and other details please read the
offer document of the scheme carefully before
investing.
*Systematic Investment Plan.
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