Tata MF launches Dividend Yield Fund

Our Bureau Mumbai | Updated on May 03, 2021

NFO to close on May 17

Tata Mutual Fund has launched new fund offer of Dividend Yield Fund, an open-ended equity scheme predominantly investing in dividend yielding stocks. The NFO, which opened on Monday, will close on May 17.

The new fund aims to provide capital appreciation by predominantly investing in a well-diversified portfolio of equity and equity-related instruments of dividend yielding companies.

Rahul Singh, CIO (equities), Tata Asset Management said given the evolving macro risks to earnings at the current valuation, volatility is here to stay in the short term. “In this back drop, we are launching a fund which would give an opportunity to earn regular dividend with capital appreciation,” he added.

Sailesh Jain, Fund Manager, Tata Asset Management, who will manage this fund, said analysis of past data suggests that high dividend paying companies generally provide greater protection during market volatility and generate gains that are in line with the broader market when the market stabilises.

In addition to the stable and growing companies paying dividend, the new fund may invest in out-of-favour dividend paying companies that can benefit from re-rating driven by industry fundamentals, management execution or better capital allocation.

The Fund will also seek to invest in REITs & InvITs based on the risk-reward assessment, he said.

The scheme shall invest minimum 65 per cent of the net assets in Equity and equity related instruments of dividend yielding companies.

Published on May 03, 2021

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