Baroda BNP Paribas Mutual Fund Expands Offerings with New Dividend Yield Fund

Baroda BNP Paribas Mutual Fund has launched Baroda BNP Paribas Dividend Yield Fund

It is an open-ended equity scheme predominantly investing in dividend yielding stocks.

Dividend yield funds primarily invest in stocks of companies that pay high dividends. These funds provide a regular income stream through dividends, which can be attractive for investors looking for a steady cash flow, such as retirees or those seeking income to supplement other investments.

Dividend yield funds can be a valuable component of an investment portfolio, especially for those seeking regular income, lower risk, and potential capital appreciation. They can provide stability, tax efficiency, and a hedge against inflation, making them suitable for a range of investors, including retirees, conservative investors, and those looking for a balanced investment strategy.

[Read: Investing in High-Risk Mutual Funds: A Bold Approach]

The investment objective is to provide medium to long term appreciation 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 achieved.

Under normal circumstances, Baroda BNP Paribas Dividend Yield Fund will hold an allocation of 65% to 100% in Equity and Equity related instruments of Dividend Yielding companies, 0% to 35% in Equity and Equity related instruments of any other company other than above, 0% to 10% in Units issued by REITs & InVITs, 0% to 35% in Debt & Money Market instruments and Fixed Income Derivatives and 0% to 10% in Units of Mutual Funds (Domestic Schemes).

Baroda BNP Paribas Dividend Yield Fund invest primarily in equity and equity related instruments of dividend yielding companies at the time of investment. Companies may also choose 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. The aim will be to build a portfolio, which represents a cross section of the dividend yielding companies in the prevailing market. To reduce the risk of volatility, the Scheme will diversify across major industries and economic sectors to the extent possible.

Baroda BNP Paribas Dividend Yield Fund is benchmarked against the Nifty 500 TRI.

Baroda BNP Paribas Dividend Yield Fund will be managed by Mr Shiv Chanani and Mr Miten Vora

Baroda BNP Paribas Dividend Yield Fund is open for subscription from August 22, 2024 to September 05, 2024. The fund will reopen for continuous sale and repurchase within five business days from the date of allotment.

The minimum subscription amount is Rs 1,000/- and in multiples of Re. 1 thereafter.

The fund offers Direct Plan and Regular Plan. Under each plan the fund offers Growth option and Income Distribution cum Capital Withdrawal.