Aditya Birla Sun Life Insurance Launches New Dividend Yield Fund for ULIP Investors

Aditya Birla Sun Life Insurance Company Limited (ABSLI) has launched a new investment option named the Dividend Yield Fund. This fund is designed for long-term wealth creation and is available under various Unit Linked Insurance Plans (ULIPs) offered by the company, including the Wealth Infinia Plan, Vision Retirement Solution, and Nischit Wealth Solution. The fund's primary strategy is to invest in companies that consistently pay high dividends, thereby aiming to generate returns through a diversified portfolio. ABSLI focuses on selecting financially robust and profitable businesses with scalable models and steady dividend payouts, providing investors with a blend of growth, stability, and income. The fund features high equity exposure, with at least 75% invested in dividend-yielding equity instruments, and an overall asset allocation ranging from 80-100% in equities and up to 20% in debt instruments, money market instruments, and cash. Key features highlighted include significant equity exposure, diversification across quality companies, active fund management, and the life insurance coverage inherent in ULIPs. The subscription period for the Dividend Yield Fund begins on November 6, 2025, with an initial Net Asset Value (NAV) of ₹10 per unit, and concludes on November 20, 2025. ABSLI reminds investors that ULIP products are subject to market-linked investment risks, and policyholders bear these risks. Withdrawals or surrenders are not permitted during the first five years of the policy contract.

Impact This new fund launch provides Indian investors, particularly those already invested in ABSLI's ULIPs, with a new avenue to seek returns through dividend-paying stocks. It could potentially attract capital towards such stocks and diversify investment options within the insurance sector. Rating: 6/10.

Difficult Terms: ULIP (Unit Linked Insurance Plan): A type of insurance policy that combines life insurance coverage with investment in market-linked instruments. A portion of the premium pays for insurance, while the remainder is invested. Dividend Yield: A financial ratio that shows how much a company pays out in dividends each year relative to its stock price. A higher dividend yield indicates a greater return on investment from dividends. NAV (Net Asset Value): The per-share market value of a mutual fund or an exchange-traded fund. It is calculated by dividing the total value of the fund's assets minus its liabilities by the number of outstanding shares. Asset Allocation: The strategy of dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash, to balance risk and reward. AUM (Assets Under Management): The total market value of the investments that a financial institution manages on behalf of its clients.