The NFO of the fund opens for subscription on April 25, 2014 and closes on May 09, 2014.
ICICI Prudential Mutual Fund will launch its open ended equity fund called ICICI Prudential Dividend Yield Equity Fund. The NFO of the fund opens for subscription on April 25, 2014 and closes on May 09, 2014.
The fund aims to provide medium to long term capital gains and/or dividend distribution by investing in a well-diversified portfolio of equity and equity related instruments which offer attractive dividend yield.
In a press release, Nimesh Shah, Managing Director and Chief Executive Officer, ICICI Prudential MF, said, “Companies with a good track record of paying high dividends yield are seen as better investment options. Investing in such companies is also one of value investing strategy. In a bull market, such companies could add to the overall capital appreciation and improve gains. In a bear or volatile market, they could compensate for the limited scope of capital appreciation. Hence, a high dividend stock could find favor in any market conditions.”
On investment strategy, the company’s press release said that the fund would invest in companies that have dividend yield greater than the dividend yield of CNX Nifty Index, at the time of investment. The fund will focus on companies having quality in terms of stable cash flows, relatively strong market positions, growth potential and proven track record. Also, the fund will focus on stocks having low volatility, said the press release.
Benchmarked against CNX Dividend Opportunities Index, the fund has a minimum application amount of Rs. 5,000.The scheme will charge an exit load of 1% if redeemed within 18 months. No exit load will be charged thereafter. Mrinal Singh, Vinay Sharmaand Ashwin Jain will co-manage the fund.
