Tata Mutual Fund launches Tata Dividend Yield Fund

By Et Online11 days ago

Tata Mutual Fund has announced the launch of Tata Dividend Yield Fund, an open-ended equity scheme predominantly investing in dividend yielding stocks. The NFO will be open for subscription till May 17. The investment objective of the fund is to provide capital appreciation and dividend distribution by predominantly investing in a well-diversified portfolio of equity and equity related instruments of dividend yielding companies.

The fund will be managed by Sailesh Jain, Fund Manager at Tata Asset Management. The press release said that 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.

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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, said Rahul Singh, CIO-equities, Tata Asset Management.

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