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All of us love receiving something extra when we invest. Receiving a dividend from a company at regular frequencies can help you boost your savings over time. By choosing stocks that offer dividends, you stand to gain in two different ways:

1. You have an additional income in the form of dividends at regular intervals

2. You also gain from the capital appreciation of the stocks

The ABSL Dividend Yield Fund invests in the stocks of companies that distribute dividends regularly to stockholders. Companies that offer dividends are likely to have a better track record and are trusted in their respective niches.

About the Fund House

Aditya Birla Sun Life Asset Management Company Limited (earlier known as Birla Sun Life Asset Management Company Limited) is a joint venture between Sun Life Financial, one of the leading international financial services organization based in Canada and Aditya Birla Group, one of the top business houses in India.

The JV brings together the experiences of Aditya Birla Group in the domestic Indian market and Sun Life’s global financial services expertise. The Aditya Birla Sun Life Mutual Fund (ABSLMF) was established in India in 1994 as a result of the partnership between Aditya Birla Group and Sun Life Financial.

Today, the company is one of the leading mutual fund houses in India with an AUM (Assets under Management) of Rs. 2423 billion in India, as in the last quarter of 2018. The fund house has a wide range of mutual fund schemes in India offering a mix of equity, debt, hybrid and balanced funds. The company manages investor folios worth Rs. 6.8 million.

ABCL has a pan-India presence with over 850 branches across the country. The company employs 18000+ employees as well as distributes its products via 2lakh+ agents and channel partners. ABCL oversees assets worth over 3000 billion rupees (as on 30th June 2019). The parent company Aditya Birla Group is a Fortune 500 company and is worth over the US $48.3 billion.

The investment objective of the ABSL Dividend Yield mutual fund scheme is to provide capital growth to investors. It achieves capital growth by investing predominately in the stocks of companies that pay high dividends. This fund has a well-diversified portfolio.

Who is this fund suitable for?

This fund is suitable for investors:

  • Looking for long term growth of their capital
  • Looking to diversify their portfolio by investing in equity and equity-related securities
  • Looking for equities that offer high dividends proportional to share prices

Invest in the ABSL Dividend Yield Fund if

1. You have an investment horizon of at least three years

2. You are looking to invest in equities that declare dividends at periodic intervals

3. You do not require your funds immediately

Highlights of the Aditya Birla Sun Life Dividend Yield Fund

It is a well-diversified equity-oriented fund that invests predominately in stocks of companies that offer high dividend yields. The fund identifies companies with a high dividend yield using the following formula – dividend paid in the previous year divided by the current market price of per unit of stock.

Salient Highlights of the Fund:

  • The Aditya Birla Sun Life Dividend Yield Fund has declared dividends 44 times since the fund’s inception (as on March 2018).
  • The fund has declared consistent quarterly dividends, every quarter since March 2015.
  • Helps investors invest in companies that share their profits, thereby wealth creation opportunities.

Features of Aditya Birla Sun Life Focused Equity Fund
Fund TypeOpen-ended mutual fund scheme
Fund ClassEquity-oriented
CategoryDividend Yield
Fund launch date26th February 2003
Latest NAV145.68 (updated on 8th August 2019)
Investor Risk ProfileModerately high
Investment OptionsGrowth and Dividend (Sweep out, Payouts and Reinvestments)
Default Investment OptionDividend Reinvestment
Folios (Last Updated on 31st March 2019)71749
AUM (Assets Under Management) (Last Updated on 31st March 2019)Rs. 809.30 crores
Minimum Subscription AmountRs. 1000 per month (in increasing multiples of Rs. 1 after that)
Minimum Additional InvestmentRs. 1000 per month (in increasing multiples of Rs. 1 after that)
Benchmark IndexNifty Dividend Opportunities 50 Index
Entry LoadNil
Exit Load

1.00% of the applicable NAV - For switch out/redemption of units within 365 days of allotment

Nil – For switch out/redemption of units after 365 days of allotment

Other Parameters
Standard Deviation14.86%
Sharpe Ratio-0.01
Portfolio Turnover0.53
Expense Ratio – Regular1.45
Expense Ratio – Direct1.80


This indicates the risk level of the Aditya Birla Sun Life Dividend Yield Fund. The risk level is

Moderately High (which means that the principal is at moderately high risk)

*If you are unsure if this fund is right for you, make sure to consult your financial advisor, before investing in it.

Ideal Investment Horizon

The Aditya Birla Sun Life Dividend Yield Fund has the potential to offer maximized returns when an investor stays invested for three years or more.

S.No.Instrument ClassAsset AllocationRisk
1High dividend yield equity and equity-oriented investments65% to 100%High
2Other equity and equity-related instruments0% to 35%High
3Money Market instruments and Debt Securities0% to 20%Low

Investment and Stock Selection Strategy of the ABSL Dividend Yield Fund

The Aditya Birla Sun Life Dividend Yield Fund aims to generate returns by investing in the stocks of high dividend-paying companies. Generally, companies that offer high dividends also offer a high degree of protection in falling equity markets, thereby protecting the investments of investors.

Apart from the protection against free-fall, companies that offer dividends consistently also have higher potentials for stock prices increasing, when the equity markets revive. By choosing a high dividend yield investment along with other parameters like low market capitalization to sales ration, low price to book value ratio, the possibilities of generating higher returns are more.

The Aditya Birla Sun Life Dividend Yield Fund builds a portfolio that is a combination of high dividend yield, along with substantial capital protection and strong possibilities for capital gains. The general rule of thumb is that investing in stocks that offer high dividend yields is a “defensive investment strategy.” With this approach, the ABSL Dividend Yield Fund achieves higher returns when compared to investing in other securities like fixed bonds, debentures, etc.

High dividend yields also signal that the company has sufficient cash generation. Thereby, choosing the right companies that offer high dividends unlocks the potential for growth. Apart from high dividends, the fund manager and team consider these other factors while evaluating companies:

  • Quality of management
  • Track record of the business
  • Industry trends
  • Business administration and fundamentals
  • Growth prospects
  • Consistency of dividend payments
  • And, the volatility of the stock

Since this mutual fund scheme adopts a defensive strategy, it primarily invests in stocks of companies that have a low beta. The beta value is a measure of the volatility of the stock, relative to an index.

Discipline and Transparency

The ABSL Dividend Yield Fund may at times vary from the asset allocation pattern to invest in special situations like de-listing opportunities, share buy-backs, mergers, and acquisitions. The investment process for these special situations will be different from regular investing under the scheme.

Suitable market opportunities will be seized after careful consideration of short-term and long-term benefits. These opportunities will be discussed by the investment team and would be carried out only after proper risk evaluations. Additionally, the justifications for these investment decisions will be properly recorded and maintained.

Note that Aditya Birla Sun Life Asset Management Company may review and modify the investment strategy of the fund from time to time. The company may make appropriate changes if it meets the best interests of the unitholders.

S.No.IssuerPercentage of Net Assets
1Infosys Ltd.4.99
2ITC Ltd.4.2
3Sanofi India Ltd.3.65
4Coal India Ltd.3.59
5Hero MotoCorp Ltd.3.14
6HDFC Bank Ltd.3.13
7NTPC Ltd.3.04
8Orient Refractories Ltd.2.53
9Mahanagar Gas Ltd.2.45
10ICICI Prudential Life Insurance Company Ltd.2.37

S.No.SectorPercentage of Net Assets
2Consumer products18.7%
3Metals and mining10.3%
5Power Utilities8.6%
7Oil & Gas7.0%
8Industrial and Engineering7.0%
9Consumer Services6.3%

Dividend History

Declared on Date

25th June 2018

16th March 2018

22nd December 2017

Dividend Yield in the Regular Plan0.92%2.52%2.42%
Dividend (Rs) per unit0.140.410.43
Cum Dividend NAV15.3516.3017.76

Time PeriodOne yearThree yearsFive yearsSince inception
Aditya Birla Sun Life Focused Equity Fund0.606.0814.5120.02
Value of standard investment of Rs. 10,000Rs. 9940Rs. 11,938Rs.19,703Rs. 1,64,640
Nifty Dividend Opportunities 50 Index13.2311.8813.05NA
Value of standard investment of Rs. 10,000Rs. 11,323Rs. 14,003Rs. 18,474NA
Additional Benchmark – Nifty 50 TRI14.0910.0014.2818.00
Value of standard investment of Rs. 10,000Rs. 11,409Rs. 13,309Rs. 19,507Rs. 1,26,808

(Assuming a SIP investment of Rs. 10,000 every month)

Time PeriodOne yearThree yearsFive yearsSince inception
Total Amount InvestedRs. 1,20,000Rs. 3,60,000Rs. 6,00,000Rs. 15,30,000
Market value of invested amountRs. 1,12,673Rs. 3,92,944Rs. 7,60,525Rs. 63,63,624
Scheme Returns (CAGR)11.255.799.4414.62
Nifty Dividend Opportunities 50 Index6.3515.4013.30NA
Nifty 50 TRI returns9.4114.1512.7914.02

*Note that – Past performance is not indicative of future performance and may or may not be sustained in future.

Plan Types and Options

The Aditya Birla Sun Life Dividend Yield Fund has two plan types:

  • Regular plan
  • Direct plan

Both these plans have a common portfolio but separate NAVs. While applying for the fund, investors have to choose the type of plan they are subscribing for. Both the above plans have two sub-classifications:

  • Growth option
  • Dividend option – Payout, Sweep, and Reinvestment

Note that:

The direct plan is available only to investors who subscribe or purchase units directly from the mutual fund and not via a distributor. The default option of the ABSL Focused Equity Fund is the Dividend Option (Reinvestment Facility). If an applicant has not mentioned the growth or dividend option, the dividend option (with reinvestment) is selected by default.

1. How does the fund manager identify stocks with high dividend yield?

The fund manager and team identify equities whose dividend yield is greater than the dividend yield of the latest report of the Nifty 50 Index published by the NSE. They look for companies that periodically declare dividends to investors and choose the best-performing ones with a strong track record.

2. Does this plan offer a SIP?

Yes. You can invest in this plan by starting a SIP from as low as Rs. 1000 per month.

3. What is the benchmark index of this fund?

The benchmark is Nifty Dividend Opportunities 50 TRI Index.

4. How to invest in the Aditya Birla Sun Life Dividend Yield Fund?

Investors can choose any one of the following methods:

  • Apply online – fill in the application form, upload supporting documents, and pay the fees online.
  • Call toll-free number 1800 – 270 – 7000 to speak with an investment advisor and to start the application process.
  • Visit the nearest branch of Aditya Birla Sun Life and fill in the application form in person.
  • Reach out to the customer care team by messaging the Whatsapp number 88288 00033 to start the application process.

5. Where can I see the history of dividends declared since the inception of the fund?

You can check out the history of dividends declared by this fund in the prospectus (fund brochure).

*Disclaimer: Mutual fund investments are subject to market risks. Make sure to read the scheme document carefully and make the right investments. If you have any further doubts, get in touch with Aditya Birla Sun Life Mutual Fund by dialing the toll-free number 1800 270 7000.

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