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ABN Amro Dividend Yield Fund

ABN Amro Mutual Fund has launched a diversified equity fund. Named as ABN Amro Dividend Yield Fund, it will invest in stocks of companies that have a dividend yield in excess of the dividend yield of the BSE Sensex. These are the stocks which the fund defines as high dividend yield stocks. The fund will be initially open for subscription from August 1 to August 30, 2005.

As per the stated asset allocation, the fund will invest 65-100 per cent of its assets in high dividend yield stocks, and up to 35 per cent of its assets in stocks which do not have a high dividend yield. The fund can also invest up to 35 per cent of its assets in debt and money market instruments.

During the initial subscription period, the fund will charge an entry load of 2.25 per cent for investment of an amount less than Rs 5 crore, and beyond that no entry load will be charged. The fund will not charge any exit load.