Page 17 - Banking Finance June 2017

MUTUAL FUND

MUTUAL FUND

NEWS
NEWS
NEWS
NEWS
NEWS

Tax-free dividend of 13%: Impact of GST on Mutual Fund Investments
UTI "The impact will not be that big, but it surely will change something for the
mutual fund investors. The higher expense ratio will lead
UTI Opportunities Fund declares tax-
free dividend of to lower returns in mutual fund schemes." says Neil
13% (Re. 1.30 Parikh, CEO, PPFAS Mutual Fund.
per unit on The government has kept the service tax at a standard
face value of of 18 % for the financial services industry. This means a
Rs.10) under dividend option-existing 3% points hike in tax liability for distributors. "The dis-
plan and dividend option -direct plan. tributors are going to face the heat of GST, but not all of them. The smaller
The record date for the dividend is 15th distributors, earning less that Rs 20 lakhs per year, will be exempt from the taxes,"
May, 2017. says Mukesh Gupta, Director, Wealthcare Securities.
All unit holders as on the record date
will be eligible for this dividend along IDBI Bank looks out for buyers
with the investors who join the dividend IDBI Bank explores for buyers for its mutual fund business. At March-end the
option -existing plan and dividend op- average Assets Under Management of IDBI Mutual
tion-direct plan of the scheme on or Fund stood at Rs 7,718 crores as against from Rs 7,761
before the cut off time of the record crores end of December.
date. The NAV of UTI Opportunities IDBI Bank may also look at divesting its stake in other
Fund on May 9, 2017 was Rs.18.7152 non-core ventures like IDBI Federal Life Insurance IDBI
for dividend option-existing plan and Capital Market Services, IDBI Intech, National Stock
Rs. 21.0879 for dividend option-direct Exchange, National Securities Depository, and NSDL E-Governance
plan. infrastructure.

Birla Sun Life Mutual Fund renames three monthly income plans
Birla Sun Life Mutual Fund has decided to change the name of 3 monthly income
plans with effect from May 27. Birla Sun Life MIP will be renamed to Birla Sun Life
Long Term Accrual Fund, Birla Sun Life Monthly Income to Birla Sun Life Low Du-
ration Fund and Birla Sun Life MIP II Savings 5 Plan to Birla Sun Life Credit Oppor-
tunities Fund.
These schemes were earlier hybrid schemes and invested in both equity and debt
instruments, but the renamed schemes will invest only in debt instruments. Other
features of the scheme shall remain unchanged.

BANKING FINANCE | JUNE | 2017 | 17

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