The Hindu Business Line : MFs woo investors with dividends in June

NEW DELHI: As the equity markets have started looking up, at least seven mutual fund houses have announced dividends on various schemes in the past one month in their effort to revive the waning investor interest.

Mutual Funds (MFs) experts believe the turnaround in the stock market has increased the returns in the equity schemes which the fund houses are trying to share with their clients to revive confidence of investors.

“With the improvement in market conditions, fund houses are passing on the benefit to the investors and the dividend yield of about 9-10 per cent is much higher than returns from fixed deposits,” Taurus Mutual Fund managing director, Mr R K Gupta said.

The fund houses which have declared dividends for investors in June include Religare Mutual Fund, Birla Sun Life MF, UTI MF, JM Financial MF, IDFC Mutual Fund, Sundaram BNP Paribas and Bharti Axa MF.

“Dividend is also used to attract investors for mutual fund schemes, as the investor confidence had petered out due to meltdown at the bourses,” Mr Gupta said.

Religare MF has declared maiden dividend of 7.5 per cent or Re 0.75 per unit on the face value of Rs 10 under the retail option of its scheme Religare Banking Fund.

All investors under this scheme are eligible for the dividend which would be distributed on the record date of July 3, 2009, the company said in a statement. - PTI

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