LICMF Dividend Yield Fund

Invest in Investment Objective

The Investment objective of the Scheme is to provide long term capital appreciation and/or Income Distribution cum capital withdrawal (IDCW) distribution by investing predominantly in dividend yielding equity and equity related instruments. However there can be no assurance that the investment objective under the scheme will be realized.

Minimum Application Amount/switch in

Application Amount (Other than fresh purchase through SIP) – Rs. 5,000/- and in multiples of Rs.1 thereafter.
SIP Amount –
  1. Daily – Rs. 100/- and in multiples of Re.1/- thereafter.
  2. Monthly – Rs. 200/- and in multiples of Re.1/- thereafter.
  3. Quarterly – Rs. 1,000/- and in multiples of Re.1/- thereafter

Load Structure

Entry Load - Not applicable
Exit Load
  • Nil, If units of the Scheme are redeemed or switched out up to 12% of the units (the limit) within 12 months from the date of allotment. 1% of the applicable NAV, If units of the scheme are redeemed or switched out in excess of the limit within 12 months from the date of allotment. Nil, If units of scheme are redeemed or switched out after 12 months from the date of allotment.

Minimum Additional Amount
(For subsequent investments under an existing folio)

₹ 1000 and in multiples of ₹ 1 thereafter.

Minimum Redemption Amount

₹ 1000 and in multiples of ₹ 1 thereafter.

Benchmark Index

NIFTY 500 - TRI

Investment Strategy

  • The Investment strategy of the Scheme would be to invest predominantly in the stocks of dividend yielding companies as identified at the time of investment. Though the dividend yield is the major criteria for selection of the stocks for constructing portfolio, other parameters such as but not limited to cash flow generation, earning growth prospect, business fundamentals, expansion plans, competitive position including pricing power, strong balance sheet, management quality etc. would also be considered.

Who Should Invest?

  • Investors looking to increase equity allocation but prefer relatively better downside protection.
  • Investors looking for dual benefit of capital appreciation as well as dividends.
  • Investors with Long Term Investment Horizon i.e.3 years and above.

Asset Allocation

Instruments Indicative allocations (% of total assets) Risk Profile
Minimum Maximum High / Medium / Low
Equity and Equity related instruments of dividend yielding companies 65 100 High
Equity and Equity related instruments of other than dividend yielding companies 0 35 High
Debt and Money market instruments 0 35 Low to Medium
Units issued by Real Estate Investment Trusts (REITs) & Infrastructure Investment Trusts (InvITs) 0 10 Meduim to High
* The scheme may invest up to 50% of Net Assets of Scheme into equity derivatives instruments. Investment in derivatives shall be for hedging, portfolio balancing and such other purposes as maybe permitted from time to time.

Fund Manager

Mr. Dikshit Mittal - Managing since 31st July, 2023

Plans Available

Regular Plan and Direct Plan.
(The Regular and Direct plans will have a common portfolio)

Risk Factors

For detailed scheme/securities related risk factors, please refer to the Scheme Information Document

Options Available

1. Growth Option and 2. IDCW Option
The IDCW option has the following facilities:
(I) Reinvestment of IDCW (ii) Pay-out of IDCW
Default Investment option is Growth Option.
For the IDCW option, the default facility will be Reinvestment of IDCW
*IDCW: Income Distribution cum Capital Withdrawal

Riskometer

Investors understand that their Principal wil be at Very High Risk

This product is suitable for investors who are seeking*:
  • Long term capital appreciation.
  • Investment in predominantly in dividend yielding equity and equity related instruments.
  • Risk - Very High
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them. The change in Risk-o-meter will be evaluated on a monthly basis. For Scheme related details, including updation in Riskometer (if any) may please be referred on our website: www.licmf.com
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