Tata Mutual Fund has announced the launch of Tata Dividend Yield Fund, an open-ended equity scheme predominantly investing in dividend yielding stocks. The NFO (new fund offer) opens on May 03, 2021 and closes on May 17, 2021.
The investment objective is 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.
Though dividend yield would be the main criteria in selecting companies’ other factors like Management quality, Business growth prospects, Financials of the company, Products and Industry cycle would be considered in each and every investment decision. The scheme shall invest minimum 65% of the net assets in Equity and equity related instruments of Dividend Yielding Companies, Tata MF said.
Type of Scheme: An open-ended equity scheme predominantly investing in dividend yielding stocks.
Investment objective: The investment objective of the fund is 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.
Equity Fund Manager: Sailesh Jain
Equity Co-Fund Manager: Rahul Singh
Benchmark: Nifty Dividend Opportunities 50 TRI
Minimum Investment Amount: Rs. 5,000/- and in multiple of Re.1/- thereafter. Additional Investment: ₹1,000/- and in multiple of Re 1/ thereafter.
Speaking on the launch, Rahul Singh, CIO-equities, Tata Asset Management said that “Nifty FY22 PER at ~20x is in the fair value range after factoring in the robust earnings recovery in the medium term coupled with low interest rates. However, given the evolving macro risks to earnings at the current valuation, volatility is here to stay in the short term. With such a backdrop of earnings, low interest rates and better prospects for the domestic cyclicals, we are introducing a fund which would give an opportunity to earn regular dividend with capital appreciation.”
Sailesh Jain, Fund Manager at Tata Asset Management who will manage this fund said, “Tata Dividend Yield Fund portfolio would largely consist of companies paying dividends higher than the market. This Fund would therefore provide a healthy mix of both Stable Growth companies and Value segments of the market.”