UTI- MNC Fund, which predominantly invests in multinational companies, declared tax-free dividend 30 per cent (Rs3.00 per unit on face value of Rs10). The dividend for UTI-Growth Sector Fund-Services (UTI-GSF-Services) is 20 per cent (Rs.2.00 per unit on face value of Rs.10). The record date for the dividend is December 24, 2004, and investors who join the two schemes on or before December 24, 2004, will also be eligible for the dividend.

The NAV of the UTI- MNC Fund as on December 3, 2004 was Rs.22.46 (Post dividend distribution, NAV will fall to the extent of the pay out. The scheme has consistently outperformed the benchmark index. The scheme has generated a return of 46.57 per cent during the last one year as compared to the benchmark return of 6.91 percent.

UTI-MNC Fund (formerly known as UGS 10000) is an open-ended equity scheme, which was launched in April 1998. According to Swati Kulkarni, the fund manager of the scheme, "Multinationals the in the pharmaceutical sector are expected to increase their focus on the Indian market as India is slated to recognise product patents from 2005."

Kulkarni adds, that engineering MNCs are also expected to have good business growth potential in the near future through the value proposition they offer to their parents while the opportunities in power generation, transmission and distribution are already visible. "UTI-MNC Fund is focussed on these sectors along with consumer and technology sectors and we are confident to derive benefits out of the potential that MNCs offer," she says.

The 20 per cent dividend for UTI-GSF-Services is the fourth dividend declared by the scheme since its launch in 1999 and the second during this calendar year. With this dividend pay out, the scheme has distributed a total dividend of 70 per cent during this calendar year.

In January 2004 the scheme had declared a dividend of 50 per cent (Rs5.00 per unit on face value of Rs10) and its ex-dividend NAV is Rs21.63. The NAV of the scheme as on December 2, 2004 was Rs26.83.

The scheme has delivered a return of 42.02 per cent over the last one year as compared to the benchmark return of 39.74 per cent.

Says Sanjay Dongre, fund manager, "It is a unique scheme available in the Indian mutual fund industry whose objective is to capitalise on the growing service sector pie in India's GDP. The scheme is diversified amongst various industries in the services sector. It primarily invests in companies which provide services or produce products wherein, the value addition comes more from human resources, rather than from capital or machines."

UTI -GSF- Services was launched in May 1999 as an open-ended equity scheme to provide investors the benefits of capital appreciation and income distribution through investments in equities and equity related instruments of companies engaged in the business of banking, finance and insurance, education and training, telecom services, travel and tourism, leisure and entertainment, transportation, etc.

UTI Mutual Fund was carved out of Unit Trust of India as a SEBI registered mutual fund by repealing the Unit Trust of India Act (1963) on 1st February 2003. UTI Mutual Fund (UTI MF) manages the pure Mutual Fund schemes, which are fully SEBI compliant and in line with the best global practices, while, Specified Undertaking of the Unit Trust of India (SUUTI) manages schemes which involve the commitment of the Government of India.