HDFC Dividend Yield Fund

HDFC Mutual Fund

NFO Start Date

November 27, 2020

NFO Close Date

December 11, 2020

Scheme Type

Open Ended

Category

Equity - Dividend Yield Fund

Object of Scheme

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. There is no assurance that the investment objective of the Scheme will be realized.

Suitability

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

InstrumentsMinimum % of total assets (Indicative)Maximum % of total assets (Indicative)Risk Profile
Equity & Equity related instruments65100Medium to High
Equity & Equity related instruments035Medium to High
Non-convertible preference shares010Low to Medium
Debt, Securitized debt & Money market instruments035Low to Medium
Units that are issued by REITs and INVITs010Moderate to High
Unit of Mutual Fund020Moderate to High

Riskometer

Moderately High

Benchmark

NIFTY Dividend Opportunities 50 TRI

Exit Load

Exit load of 1.00% is payable if Units are redeemed / switched-out within 1 year from the date of allotment of units

Minimum Investment

Purchase: Rs. 5,000 and any amount thereafter Additional Purchase: Rs. 1,000 and any amount thereafter

Fund Manager

Mr. Gopal Agarwal  Collectively over 16 years of experience in Fund Management and 2 years in Equity Research

Mr. Anand Laddha Dedicated Fund Manager for Overseas Investments and Senior Equity Analyst.

 

Risk Factor

  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.

Investment Strategies

  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.

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