- Date : 23/02/2023
- Read: 2 mins
The open-ended scheme aims to generate capital income for the long term by investing in a diversified portfolio of equity-based and equity-related instruments.
SBI Mutual Fund, the largest MF in India, has launched the SBI Dividend Yield Fund. It is an equity scheme (open-ended) that will invest for capital appreciation and dividend distribution in a diversified portfolio. It launched on February 20, 2023, for investors looking for dividend income. The NFO is open till March 6, 2023.
SBI Mutual Fund CEO and MD Shamsher Singh said that he was elated to announce the launch of this fund, providing investors with a diverse mix of growing and high dividend yield companies. He added that they were the largest MF in India and are happy to add to their offerings as this category has much growth scope.
SBI Dividend Yield Fund
The open-ended scheme aims to generate capital income for the long term by investing in a diversified portfolio of equity-based and equity-related instruments. It will try to maintain at least 65% of its assets in these instruments. It will also look actively to invest in companies with lower dividend yields but consistent payout growth. Investors wanting to invest in companies paying dividends with robust growth potential can invest in this fund.
SBI Mutual Fund, CBO, and Deputy MD, DP Singh, said that investors believe that high dividend yield companies provide regular income. However, many are strong businesses with high growth potential. These are companies with long-term growth potential. The fund is an opportunity for investors that want steady long-term cashflows. First-time and long-term wealth-creating investors can opt to invest in this fund. The NIFTY 500 TRI will be the benchmark.
Also Read: How is dividend income taxed?
The primary aim for an investor investing in this scheme must be to earn from dividends on equity-related and equity instruments. They can benefit from capital appreciation and dividend earnings. The open-ended scheme allows investors to invest money once the fund house begins allotting units.