Tata Mutual Fund Launches Tata Dividend Yield Fund
   May 03, 2021

Tata Mutual Fund (MF) has launched an open ended equity scheme - Tata Dividend Yield Fund.

The scheme endeavors to predominantly invest in companies paying regular dividends i.e. dividend yielding stocks.

Accordingly, the investment objective is to provide capital appreciation and/or dividend distribution by investing predominantly in a well-diversified portfolio of equity and equity related instruments of dividend yielding companies. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The scheme does not assure or guarantee any returns.

Under normal circumstances, 65% to 100% of the funds portfolio will be invested in equity & equity related instruments of Dividend Yielding Companies. Whereas upto 35% of its assets can be invested in Other Equity & Equity related Instruments of other Companies.

The scheme may also invest upto 35% of its assets in Debt & Money Market Instruments, and  may seek to invest upto 10% of its net assets in Units issued by REITs and InvITs.

The investment strategy of Tata Dividend Yield Fund as mentioned in the Scheme Information Document (SID) is as follows:

The scheme shall 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.

While trailing dividend yield will be an important factor in selecting a stock, the fund manager will also consider on business fundamentals, industry outlook, absolute as well as relative valuations, growth outlook and corporate governance. Further, to achieve diversification the Scheme may also invest up to 35% of the assets in companies other than Dividend Yielding Companies.

The Scheme may also use various derivatives and hedging products from time to time, as would be available and permitted by SEBI, in our endeavor to protect the value of the portfolio and enhance Unit holder’s interest.

Tata Dividend Yield Fund’s performance will be benchmarked against Nifty Dividend Opportunities 50 – TRI (Total Return Index).

Tata Dividend Yield Fund will be managed by Mr Sailesh Jain (Equity Fund Manager), Mr Rahul Singh (Equity Co-Fund Manager), Mr Venkat Samala (Overseas Securities), and Mr Murthy Nagarajan (Debt Portfolio).

The NFO opens for subscription on May 03, 2021 and closes on May 17, 2021. The scheme will reopen for fresh investments on or before May 27, 2021.

The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Income Distribution cum Capital Withdrawal Option (Re-investment and Pay-out facility).

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