SBI Mutual Fund launches dividend yield fund, NFO open till March 6

The scheme will target aggregate dividend yield that is at least 50 per cent higher than the Nifty 50 index

BS Reporter Mumbai
Mutual fund

SBI Mutual Fund has launched a dividend yield fund, which will invest in equities of dividend yielding companies. The open-ended scheme will aim to generate returns through both — capital appreciation and dividend distribution.
The scheme will target aggregate dividend yield that is at least 50 per cent higher than the Nifty 50 index, the fund house said. "(the scheme will invest) in businesses across market capitalization, be style agnostic with no sector bias, with attractive dividend yields plus potential growth in dividends," SBI MF said in a press release.

"High dividend yield companies are generally thought of only from the angle of providing regular income, but many of them are strong growth-oriented businesses across market cap with the potential of long-term wealth creation. SBI Dividend Yield Fund presents an opportunity for those looking to invest in such strong businesses with steady cash flows for long-term," said D P Singh, Deputy MD and Chief Business Officer, SBI MF.
The new fund offering opened for subscription on Monday and will close on March 6.

Dividend yield funds, which primarily invest in equities of companies that declare dividends regularly, are more tax-efficient than equities with the dividend payout option. 

Also Read

Losing steam: Average NFO collection slumps in FY23, shows data

NFO collections shrink in 2022 as new equity fund launches dry up

Dec quarter net up 65%, Nestle announces final dividend of Rs 75 per share

SBI Q2 PAT may rise up to 98% QoQ, asset quality could improve: Analysts

10-year bond yield at highest since November on Budget 2023 jitters

Fund Pick: ICICI Prudential Value Discovery Fund a consistent outperformer

Invest bulk of debt portfolio in funds that have 2-5-year average maturity

Rs 40-trillion MF industry braces for industry-wide forensic audit

Navi Mutual Fund first to switch from active to passive ELSS fund

Easy steps to help the lay investor get started investing in mutual funds

First Published: Feb 20 2023 | 8:53 PM IST

Explore News