SBI Dividend Yield Fund Regular Plan Growth

Updated: 06-10-2025 07:34:51 AM

Investment Objective

SBI Dividend Yield Fund seeks to provide investors with opportunities for dividend distribution and/or capital appreciation by investing primarily in a well-diversified basket of equity and equity related instruments of dividend yielding companies.

Investment Strategies

• The scheme invests at least 65% of the portfolio in companies having a relatively high dividend yield. The residual net asset is invested in companies other than dividend yielding companies, debt & money market securities, units of REITS & InvITs and overseas securities for diversification.
• It aims to build a portfolio with an aggregate dividend yield at least 50% higher than that of the Nifty 50 Index.
• The fund considers dividend yielding companies, which have exercised share buybacks or paid dividends at least once in the three previous financial years.
• The fund follows a bottom-up approach to stock-picking without any sector or market cap bias.
• The fund focuses on businesses offering attractive dividend yields and those with the potential for future dividend growth.
• It also seeks tactical investment opportunities across both domestic and overseas markets.

Who Should Invest

• Millennials & first time investors having an investment horizon of at least 4 years and seeking exposure to relatively strong businesses for long term wealth creation.
• Direct equity investors aiming to build a diversified portfolio with investments in companies offering high dividend yielding based on research expertise.
• Long term investors seeking to build wealth to achieve their long term financial goals with a potentially better risk return trade off.
• Investors seeking regular cash flows through Systematic Withdrawal Plan (SWP) facility, which is more tax efficient than receiving dividends directly from stocks.

Frequently Asked Questions

What is the risk level of SBI Dividend Yield Fund?
As per the fund factsheet published by the fund house, SBI Dividend Yield Fund is considered to carry ‘Very High Risk’ for its investors.

Is there any lock-in period in SBI Dividend Yield Fund?
SBI Dividend Yield Fund has no lock-in period for its investors. Thus, the investors of SBI Dividend Yield Fund are free to make redemption requests on any day as per their requirements.

What type of mutual fund is the SBI Dividend Yield Fund?
SBI Dividend Yield Fund is an open-ended equity mutual fund scheme belonging to the dividend yield fund category.

Is SBI Dividend Yield Fund an open-ended or close-ended scheme?
SBI Dividend Yield Fund is an open ended equity mutual fund scheme. The fund primarily invests in dividend yielding stocks.

What is the benchmark index for SBI Dividend Yield Fund?
Nifty 500 TRI is the benchmark index of the SBI Dividend Yield Fund. The fund also has BSE Sensex TRI as its additional benchmark index.