HDFC Dividend Yield Fund NFO is the new fund offering from HDFC Mutual Funds. The NFO for the fund will be open for subscription from the 27th of November 2020 to the 11th of December 2020. HDFC Dividend Yield Fund is an open-ended scheme which will invest a major portion of its assets in dividend yielding stocks. 65% of the fund’s assets will be invested in stocks that invest in companies that have declared dividends in the last 3 years or have done buybacks. Dividend yielding stocks are shares of those companies that share a part of their profits with the shareholders. There are several advantages of investing in dividend yielding stocks, some of which are discussed in the video. The minimum initial investment in the HDFC Dividend Yield Fund is Rs. 5000. Additional investment may be made with Rs. 1,000. The fund carries an exit load of 1% for units redeemed within 1 year. One of the major advantages of investing in a dividend yield fund is the tax arbitrage benefit. Since, dividends to MFs are not taxed, all gains are taxed as capital gains in the hands of the investor.