SBI Mutual Fund stated that it had collected over Rs 3,600 crore in its New Fund Offer (NFO) for a dividend growth fund offering, giving it a market share of over 25 percent in the industry. The fund house collected the amount on the back of a strong promotion in regional languages, with around 1.23 lakh applications from 70 percent of pin codes in the country and around 40,000 new investors.
The NFO of SBI Dividend Yield Fund was open from 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 percent share, the largest in the Dividend Yield category, which now has 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.