NFO:HDFC DIVIDEND YIELD FUND.

HDFC DIVIDEND YIELD FUND

An open ended equity fund that aims to invest dividend yielding companies with a preference on companies that have consistent track record of paying dividends and companies having dividend yield higher than Nifty 50 index.

NFO Dates:

 

Opens on: 27th November 2020

 

Closes on: 11th December 2020

 

Risk:-Moderately High

 

Fund Manager will look to build a diversified portfolio of companies present across sectors and market cap. Aim will be to invest in companies

Investment Objective:-The scheme aims 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. 

· Stable business models and stable cash flows such as FMCG, IT

· Profits are expected to grow which will lead to increase in dividends - Opportunities across sectors (Autos, consumer, cement, media etc)

· Companies are expected to do a Buy back such as IT, MNCs

· Companies trading at attractive dividend yields - Utilities, mining, etc. (trading at 1x to 2x Gsec yields)

       

We believes this is a good time to consider this fund due to following reasons:

· Low Interest Rates make high dividend yield stocks attractive

· Current polarized valuations make high dividend yielding stocks attractive

· Due to change in taxation, many companies are opting for buy back which can be a good way to reward shareholders and improve the valuations of these companies     

Further, over the last 13 years, NIFTY Dividend Opportunities 50 TRI has outperformed NIFTY 50 TRI by a CAGR of 1.87%; with outperformance over the long term coupled with reasons mentioned above, the case becomes even stronger to invest in this Fund.

 

Fund will be managed by Mr. Gopal Agarwal

 

Benchmark for the Fund: Nifty Dividend Opportunities Fund 50 TRI

A dividend yield fund targets specific stocks and investments and as dividend payout from the companies as its core theme. It is also available in growth and dividend options.Both Plans Are available In these Funds Growth and Dividend.

Read Scheme Documents For more information:-

http://motilaloswal.xcelmail.in/ltrack?g=1&id=eUkGAVEHVwMBChgHBwVZU1ICXRg=UQEAU1IBA0kQBlxSVENRRAwEUwR5XglWXlhPAQtd&client=592&c=0000