top of page

SBI DIVINDEND YIELD FUND NFO


SBI Mutual Funds has launched Dividend Yield Fund NFO that open for subscription from 20th February 2023. SBI Dividend Yield Fund predominantly will invests in dividend yielding stocks and aims to provide capital appreciation and regular income.

Investment Objective

The investment objective of the scheme is to provide investors with opportunities for capital appreciation and/or dividend distribution by investing predominantly in a well-diversified portfolio of equity and equity related instruments of dividend yielding companies.

However, there can be no assurance that the investment objective of the Scheme will be realized.

What are Dividend Yield Funds?

As the name indicates, dividend yield funds invest in dividend yielding stocks. Their main motto is to provide capital appreciation by providing regular income.

Investment Strategies

The scheme would invest predominantly (at least 65% of the net assets) in companies that have a relatively high dividend yield, at the time of making the investment. Companies may also choose to do a buyback in addition to or as an alternative to dividend. This also constitutes a yield to shareholders and will be accordingly used while calculating dividend yield. The Scheme will consider dividend yielding stocks which have paid dividend (or done a buyback) in at least one of the three preceding financial years.

Benchmark

NIFTY 500 TRI

Asset Allocation

The funds collected under the scheme shall generally be invested consistent with the objective of the scheme in the following manner:

instruments

Indicative allocations (%)

Risk Profile

Equity and equity related instruments of dividend yielding companies (including equity derivatives)

65-100

High

Other equity & equity related instruments

0-35

High

Debt securities (including securitized

debt & debt derivatives) and money

market instruments

0-35

Low to Medium

Units issued by REITs and InvITs

0-10

Medium to High

NFO - Issue details

This is an open-ended mutual fund. Here are the NFO issue details.

Scheme Opens

20-Feb-23

Scheme Closes

06-Mar-23

Scheme reopens for continuous purchase/sale

Within 5 working days

Minimum Lumpsum

Rs 5,000

Minimum SIP

Rs 500 for 12 months

NAV of the fund

Rs 10 during NFO period

Entry Load

Nil

Exit Load

1% if redeemed in excess of 10% within 365 days

Risk

Very High Risk

Benchmark

NIFTY 500 TRI

Fund Manager

Mr Rohit Shimpi

Mr.Mohit Jain

Performance of existing Multicap Funds

Here is the performance of some existing dividend yield funds. This would give an idea to investors on how these funds have performed in medium to long term. Returns indicated here are annualized returns.

Scheme

1 Yr Ret (%)

3 Yr Ret (%)

5 Yr Ret (%)

ICICI Prudential Dividend Yield Equity Fund

​9.44

24.28

10.68

Templeton India Equity Income Fund

7.94

23.57

13.19

Aditya Birla Sun Life Dividend Yield Fund

11.12

18.26

9.1

UTI Dividend Yield Fund

2.25

16.37

10.88

Sundaram Dividend Yield Fund

3.88

16.24

11.01

IDBI Dividend Yield Fund

1.78

14.46

--

HDFC Dividend Yield Fund

9.95

--

--

Tata Dividend Yield Fund

3.94

--

--

Why should you invest

Here are a few reasons to invest in such schemes.

1) These funds provide better yield on investments as they invest majorly in blue chip funds that provide higher dividend yield.

2) The level of risk in such funds is relatively low as they invest majorly in large-cap stocks that has proven track record of paying dividends.

3) Dividend Yield Funds have generated 9% to 14% annualized returns in the last 5 years and 12% to 15% annualised returns in the last 10 years. This shows consistent performance in this category.

Suitability

  1. Investor looking for potential long term wealth Creation (>4 years), wanting to have exposure to relatively strong businesses

  2. Investor seeking a diversified portfolio with investments in high dividend yielding stocks based on research expertise

  3. Long term investors aiming to build wealth to meet their long-term financial goals with a potentially better risk return trade off.

  4. One stop solution that offers tax efficient SWP facility to meet regular cashflows unlike dividends from individual stocks

 

 


 

For any query, please fill your details below, we will contact to you shortly, or you can call us on 9837346090



 

You can also contact us via WhatsApp

You can join to us on telegram


 

*Investors should consult their financial advisors if in doubt about whether the product is suitable for them

Note: The above information has been sourced from the Scheme Information Document provided by SBI Asset Management. Read the entire document before investing, Disclaimer: Jaiprakash (ARN/Distributor - 70524; brand name Vasundhra Investment) is the distributor of the mutual fund. Please consult your investment advisor before investing

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.













Recent Posts

See All

Comments


bottom of page