SBI Mutual Fund, the largest mutual fund house in the country, said that it has mobilised around Rs 3,600 crore in its New Fund Offer (NFO) of SBI Dividend Yield Fund. The said NFO opened on February 20, 2023 and closed on March 6, 2023. With this, the fund house now commands over 25 percent share, the largest in the dividend yield category, which now has a total AUM of Rs 13,844 crore.

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The fund house recorded strong growth on the back of a strong promotion in regional languages, with around 1.23 lakh applications from 70 percent of pin codes in the country and around 40,000 new investors (new PAN registrations), SBI Mutual Fund said in a statement.

The fund house believes that the category has a lot of potential and dividend yield funds should be part of an investor’s portfolio, especially those looking to invest directly in equity or looking for a regular cash flow from dividends.

SBI Dividend Yield Fund will re-open for subscription on Friday, March 17, 2023.

About the NFO

SBI Dividend Yield Fund is an open-ended equity scheme investing predominantly in a well-diversified portfolio of equity and equity-related instruments of dividend-yielding companies.

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The investment objective of the scheme is to provide investors with opportunities for capital appreciation and/or dividend distribution by investing predominantly in a well-diversified portfolio of equity and equity-related instruments of dividend-yielding companies, according to SBI MF statement.

The scheme considers dividend-paying stocks that have paid dividends or repurchased shares in at least one of the previous three fiscal years.

Investors can opt for a tax-efficient way to receive regular cashflows by registering for a systematic withdrawal plan (SWP) (A) Facility which attracts capital gains as applicable for equity-oriented mutual funds.

SWP (A) Facility is a customised facility offered to SBI Mutual Fund investors seeking regular cash flows in a quite simple and tax-efficient manner from their investments. All one has to do is select to withdraw a fixed percentage of their cost of investment or any specified amount to meet their regular cashflow needs from the various options available (monthly, quarterly, half-yearly and yearly). SWP (A) facility can be opted for both in Growth and IDCW while the remaining corpus continues to earn returns.

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(Edited by : Anshul)