Mutual Fund News : SBI Mutual Fund Launches SBI Dividend Yield Fund

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SBI Mutual Fund has launched – SBI Dividend Yield Fund

It is an open-ended equity scheme investing predominantly in dividend yielding stocks.

Accordingly, 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.

Under normal circumstances, SBI Dividend Yield Fund will hold an allocation of 65% to 100% of its assets in Equity and equity related instruments of dividend yielding companies (including equity derivatives), 0% to 35% in Other equity & equity related instruments, 0% to 35% in Debt securities (including securitized debt^ & debt derivatives) and money market instruments and 0% to 10% in Units issued by REITs and InvITs.

As per the Scheme Information Document, SBI Dividend Yield Fund 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.

The scheme will follow a bottom-up approach to stock-picking and choose companies across sectors. The scheme will invest in diversified portfolio of stocks across market capitalization. Thus, the investment strategy of the Scheme would focus on identifying and investing in a basket of dividend yield companies from domestic as well as global universe.

SBI Dividend Yield Fund’s performance will be benchmarked against NIFTY 500 TRI

The scheme will be managed by Mr Rohit Shimpi and Mr Mohit Jain

The NFO opens for subscription on February 20, 2023 and closes on March 06, 2023. The schemes will reopen for continuous sale and repurchase Within 5 business days from the date of allotment.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000/- and in multiples of any amount thereafter.

The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal option (IDCW) option.