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May 03, 2021, Mumbai: Tata Mutual Fund announces the launch of Tata Dividend Yield Fund, an open-ended equity scheme predominantly investing in dividend yielding stocks. The investment objective is 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. 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.

Speaking on the launch Rahul Singh, CIO-equities, Tata Asset Management said that "Nifty FY22 PER at ~20x is in the fair value range after factoring in the robust earnings recovery in the medium term coupled with low interest rates. However, given the evolving macro risks to earnings at the current valuation, volatility is here to stay in the short term. With such a backdrop of earnings, low interest rates and better prospects for the domestic cyclicals, we are introducing a fund which would give an opportunity to earn regular dividend with capital appreciation –

Sailesh Jain, Fund Manager at Tata Asset Management who will manage this fund said, "Tata Dividend Yield Fund portfolio would largely consist of companies paying dividends higher than the market. This Fund would therefore provide a healthy mix of both Stable Growth companies and Value segments of the market. Our analysis of past data suggests that high dividend paying companies generally provide greater protection during market volatility and generate gains that are in line with the broader market when the market stabilizes. In addition to the stable & growing companies paying dividend, we may identify and include out-of-favor dividend paying

companies that can benefit from re-rating driven by industry fundamentals, management execution or better capital allocation. The Fund will also seek to invest in REITs & InvITs based on the risk-reward assessment."

Though dividend yield would be the main criteria in selecting companies' other factors like Management quality, Business growth prospects, Financials of the company, Products and Industry cycle would be considered in each and every investment decision

The scheme shall invest minimum 65% of the net assets in Equity and equity related instruments of Dividend Yielding Companies.

The New Fund Offer (NFO) opens on May 03, 2021 and closes on May 17, 2021. The face value of the unit is Rs. 10 and the NFO application requires a minimum application amount of Rs. 5,000 and in multiple of Re.1/- thereafter.

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