SBI Mutual Fund raises Rs 3,600 crore through dividend yield NFO

SBI Mutual Fund on Monday said it has mobilised around Rs 3,600 crore in its New Fund Offer (NFO) for a dividend yield fund offering, giving it a market share of over 25 per cent in the segment.

The fund house collected the amount on the back of a strong promotion in regional languages, with around 1.23 lakh applications from 70 per cent of pin codes in the country and around 40,000 new investors.

The NFO of SBI Dividend Yield Fund was opened during February 20 to March 6, and it will reopen for subscriptions on March 17, the company said in a statement.

With this fund collection, SBI Mutual Fund now commands over 25 per cent share, the largest in the Dividend Yield category, which now has a total assets under management of Rs 13,844 crore.

The fund house believes that the category has a lot of potential and dividend yield funds should be part of an investor's portfolio, especially those looking to invest directly in equity or looking for a regular cash flow from dividends.