No Dividends From Mutual Funds In Last 5 Months

Not a single equity mutual fund scheme has declared a dividend since April 2001. That makes it a barren patch of five months. Last year, between April and September 2000, as many as 24 schemes had declared dividends.

Investors in equity mutual funds are therefore poorer in two ways: firstly, net asset value (NAV) of these schemes has dwindled with the fall in the stock market and two, these schemes have skipped dividends.

Data available from crisil.com, the on-line venture from Crisil, on 36 equity oriented schemes show that as many as 18 schemes which paid out dividends for 1999-2000 either skipped the dividend or have not yet announced the dividend for 2000-01. Of the remaining18 schemes which paid dividends for 2000-01, six schemes have reduced the dividend for 2000-01.

Birla Advantage fund which has paid a dividend of 100 per cent for 1999-00 in two tranches has been silent about the dividend for 2000-01. Meanwhile, its NAV has declined by 27.8 per cent from Rs 24.51 on April 1, 2001 to Rs 21.64 as on September 4, 2001.

Alliance Equity fund pruned the dividend from 85 per cent paid for 1999-00 to 35 per cent for 2000-01 (paid in two tranches - 25 per cent on October 3, 2000 and 10 per cent on March 21, 2001). The NAV of the scheme has declined by 29.1 per cent since March 2001.

Prudential ICICI growth fund paid a dividend of 118 per cent during the financial year 1999-00 but has not declared any dividend for 2000-01. The NAV of the scheme has declined by 20.7 per cent in last six months.

The other major funds which paid a hefty dividend for 1999-00 but failed to declare any dividend for 2000-01 are Reliance Growth fund (100 per cent in 1999-00), Taurus Libra Leap (101 per cent), JM Tax Cover 98 (100 per cent). The major schemes which have pruned dividends for 2000-01 are Pioneer ITI Bluechip (100 per cent in 1999-00 to 47.5 per cent in 2000-01), Pioneer ITI tax (80 per cent to 72.5 per cent) and Zurich India equity (66 per cent to 17 per cent).