HDFC Dividend Yield Fund
HDFC Mutual Fund
NFO Start Date
NFO Close Date
Object of Scheme
This scheme is suitable for investors –
Looking for a diversiﬁed portfolio of dividend yielding stocks with an objective to provide capital appreciation over long term
Aiming for investment in equities with fair amount of stability and relatively lower risk (than other equity funds) over medium to long term
Asset Allocation Pattern
|Instruments||Minimum % of total assets (Indicative)||Maximum % of total assets (Indicative)||Risk Profile|
|Equity & Equity related instruments||65||100||Medium to High|
|Equity & Equity related instruments||0||35||Medium to High|
|Non-convertible preference shares||0||10||Low to Medium|
|Debt, Securitized debt & Money market instruments||0||35||Low to Medium|
|Units that are issued by REITs and INVITs||0||10||Moderate to High|
|Unit of Mutual Fund||0||20||Moderate to High|
Key risks associated to investing in fund
Equity shares and equity related instruments are volatile and prone to price fluctuations on a daily basis. Investments in equity shares and equity related instruments involve a degree of risk and investors should not invest in the Scheme unless they can afford to take the risks
The Scheme seeks to invest in equity/ equity related instruments of the dividend yielding stocks (which have paid dividend (or done a buyback) in atleast one of the three preceding financial years). Thus, the performance of the Scheme would inter-alia depend on the ability of these companies to sustain dividends (or buybacks) in future. Further, the volatility and/or adverse performance of these companies may have a material adverse bearing on the
performance of the Scheme.
The Scheme shall invest primarily in equity and equity related instruments of dividend yielding companies at the time of investment. Companies may also chose to do a buyback in addition to or as an alternative to dividend. This also constitutes a yield to shareholders.
The Scheme will consider dividend yielding stocks which have paid dividend (or done a buyback) in at least one of the three preceding financial years
What is Dividend Yield ?
Dividend yield is a financial ratio that shows how much a company pays out in dividends/ buyback each year relative to its stock price.