Publish Date:
HDFC Mutual Fund has launched HDFC Dividend Yield Fund.
It is an open ended equity scheme that will be predominantly investing in dividend yielding stocks.
The investment objective of the scheme is to seek to provide capital appreciation and/or dividend distribution by predominantly investing in a well-diversified portfolio of equity and equity related instruments of dividend yielding companies. There is no assurance that the investment objective of the scheme will be realized.
Under normal circumstances, 65% to 100% of the funds portfolio will be invested in Equity and Equity related instruments of Dividend Yielding companies. It can also invest up to 35% of its assets in Equity and Equity related instruments of other companies, or foreignsecurities (including instruments of dividend yielding companies).
The fund can also hold up to 35% of its assets in Debt & Money Market Instruments, and has flexibility to invest up to 10% of its assets inNon-convertible preference shares and Units issued by REITs and InvITs. It may also invest upto 20% of theassets units of Mutual Funds inaccordance with the applicable extant SEBI (Mutual Funds)Regulations as amended from time to time.
HDFC Dividend Yield Fundshall invest primarily in equity and equity relatedinstruments of dividend yielding companies at the time ofinvestment.The fund will consider dividend yielding stocks which havepaid dividend (or done a buyback) in atleast one of the threepreceding financial years.
While trailing dividend yield will be an important factor inselecting a stock, the fund manager will also consider business fundamentals, industry outlook, absolute as well asrelative valuations, growth outlook and corporate governance.
Further, to achieve diversification the fund may also investup to 35% of the assets in companies other than DividendYielding Companies.
The fundaims to build a portfolio, which represents acrosssection of the dividend yielding companies in the prevailingmarket. In order to reduce the risk of volatility, the Scheme willdiversify across major industries and economic sectors to theextent possible.
HDFC Dividend Yield Fund’s performance will be benchmarked against NIFTY Dividend Opportunities 50 TRI (Total Returns Index).
It will be managed by Mr Gopal Agarwal and MrAnand Laddha.
The NFO opens for subscription on November 27, 2020, and closes on December 11, 2020. The scheme will reopen for continuous Sale and Repurchase within 5 business days from the date of allotmentof units under NFO.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and any amount thereafter.
The fund offers Regular Plan and Direct Plan having Growth Option and Dividend Option (Dividend Re-investment and Dividend Pay-out facilities).