Waiting for Mastershare Dividends. Our family tradition....

UTI has declared a dividend of 27% on UTI Mastershare 86 Scheme. Record date is 1st November.

 

Our family has an emotional connection to Mastershare.

 

One of the best investment decisions my father made back in 1986 was to invest a couple of lakhs of rupees in UTI Mastershare when the scheme was launched.

 

I often wondered what prompted him to make that investment. He was not very investment savvy then. I think his auditor must have been instrumental in that decision. There must have been some tax benefits.

 

Though not investment savvy, my dad was a smart investor. He had clear financial goals for this investment. He was about to retire and he wanted the proceeds from this investment to fund the education of his two youngest sons.

 

We are four brothers. My and my next younger bro had completed our graduation by 86 and my next two brothers were about to enter the graduation. Investment in Mastershare was to fund their graduation and higher education.

 

Just to be fair all his sons, he also purchased 1440 units each in the name of me and my younger brother.

 

The scheme has withstood the vicissitudes of time and market cycles. It saw Harshad Mehta, crash and burn of Mastergain 92, demise of UTI Unit Scheme 64, 1998 bull run, 2003 collapse, 2008 collapse and is witnessing the current bull market. Despite all this turmoil, the scheme has stood like a rock, never disappointing the investor, never failing to declare a dividend.....

 

Starting 1986 the scheme has paid dividends every year without any break. In addition in the late eighties and early 90s, the scheme declared bonus and rights issues as well.

 

My dad bought the rights too. He was a conscientious investor.

 

His initial investment increased ten fold by 2000 and the dividends received paid back the initial investment by that year. Effectively he was getting free dividends from 2000.

 

My father also influenced his younger brother, whom we call Dora Chithappa (Chithappa means 'Younger Father', meaning Father's younger brother), to invest in Mastershare. I don't know how many units he held.

 

Mastershare usually pays one dividend every year around Diwali time. Waiting for UTI to announce the dividend was my family tradition over all these years.

 

Every year, around this time, I used to get two calls. One was from Dora Chithappa and the other from my mother. Both asked the same question.

 

"Kanna, what is the date of Mastershare Dividends?"

 

As soon as I get the calls, I will scramble around, go to UTI Website and search. More often than not they would not have declared dividends on that day. Till UTI declared dividend, I was on razor's edge.

 

What if I miss the update?

 

My mom especially looked forward to the dividends. My dad had allowed her to use the dividends as she wished. That was her money. The total dividends came to about 1.8 lakhs every year.

 

Two years ago, my brother sold off the units. He told that 'This scheme has Value Research rating of 3 stars. There are better investment opportunities out there'. He didn't much care for the emotional connect of this scheme to my mother.

 

My brother is practical and pragmatic.

 

Even UTI has forgotten about this scheme. If you call the UTI helpline to ask about the scheme, you will be answered with 'Excuse me?'

 

My dad passed away in 2015, Dora Chithappa followed him last year.

 

I don't get the annual calls anymore. That makes me sad.

 

I still have the 1440 units that my dad gifted me. It will give me 3500 rupees as dividend this year.

 

That is my Diwali gift to my mom. I am sure she will cherish it.