ICICI Prudential Asset Management Company has launched ICICI Prudential Dividend Yield Equity Fund, an open ended equity fund and the new fund offer period is from April 25 to May 9.
The fund will invest predominantly in companies that have dividend yield greater than the dividend yield of CNX Nifty Index.
The portfolio will be managed by Mrinal Singh, Fund Manager, ICICI Prudential AMC and Vinay Sharma, Fund Manager, ICICI Prudential AMC.
Nimesh Shah, MD & CEO, ICICI Prudential Asset Management Company said: “Companies with a good track record of paying high dividends yields are seen as better investment options. Investing in such companies is also one of value investing strategy. In a bull market, such companies could add to the overall capital appreciation and improve gains.”
“In a bear or volatile market, they could compensate for the limited scope of capital appreciation. Hence, a high dividend stock could find favour in any market conditions,” he added.
The minimum application amount for the fund is Rs. 5,000 (plus in multiple of Rs.1) and thereafter, one can avail the Systematic Investment Plan (SIP) with minimum additional application amount of Rs. 1000 (plus in multiple of Re.1).
ICICI Prudential Asset Management Company is a joint venture between ICICI Bank and Prudential Plc, a United Kingdom based player in the financial services sector.