SBI Mutual Fund announced the launch of SBI Dividend Yield Fund, an open-ended equity scheme investing predominantly in a well-diversified portfolio of equity and equity related instruments of dividend yielding companies. The new fund offer would open on February 20, 2023, and close on March 6, 2023. The first-tier benchmark of the fund is the NIFTY 500 TRI.
The investment objective of the scheme is to provide investors with opportunities for capital appreciation and/or dividend distribution by investing in a well-diversified portfolio of equity and equity related instruments of dividend yielding companies. The scheme will consider dividend-paying stocks that have paid dividends or repurchased shares in at least one of the previous three fiscal years and aim to achieve an aggregate dividend yield that is at least 50% higher than that of the Nifty 50 Index.
The minimum application amount is Rs. 5,000 and the scheme would invest between 65% and 100% of its assets in dividend-yielding companies, other equity and equity-related instruments, debt securities, and units issued by REITs and InvITs. Foreign securities may not exceed 35% of the net assets. Mr. Shamsher Singh, MD & CEO, SBI Mutual Fund, said, “As the largest fund house in the country, we continue to add to our bouquet of offerings, and we believe this category has an opportunity to grow and find merit in investors’ portfolios.”