PNB MetLife launches dividend fund linked to insurance

It is a passive fund that invests in companies with a history of paying consistent dividends.

PNB MetLife India Insurance Company Limited has launched the PNB MetLife Dividend Leaders Index Fund, a new equity fund offered through its unit-linked insurance plans (ULIPs), in partnership with Policybazaar.

The fund will be available under the Goal Ensuring Multiplier (GEM) and Smart Goal Ensuring Multiplier (Smart GEM) products. 

It is a passive fund that aims to track the BSE 500 Dividend Leaders 50 Index and invests in companies with a history of paying consistent dividends.

The new fund will be offered at an initial unit price of INR 10 during the new fund offer period starting January 16, with the first net asset value (NAV) to be declared on January 30.

The Dividend Leaders Index Fund will invest in the top 50 dividend-paying companies from the BSE 500 across sectors such as energy, technology, commodities, and utilities. 

In line with regulations, 60% to 100% of assets will be allocated to equities that form part of the benchmark index, while up to 40% may be invested in money market instruments for liquidity.