PNN
New Delhi [India], January 16: Dividend-led investing has emerged as a disciplined equity strategy for investors seeking stability alongside long-term growth. Companies that consistently distribute dividends often demonstrate strong governance, resilient cash flows, and prudent capital allocation. In volatile market environments, such attributes can add a layer of balance to equity portfolios.
For investors seeking a rules-based approach to investing in high dividend yield companies, PNB MetLife has launched the PNB MetLife Dividend Leaders Index Fund at an initial Net Asset Value (NAV) of ₹10. This new fund launch is available for a limited period and offers structured exposure to the BSE 500 Dividend Leaders 50 Index (Customised), enabling investors to participate in a rules-based portfolio of companies selected for their dividend yield and consistency.
The index comprises the top 50 dividend-paying companies selected from the broader BSE 500 universe, based on predefined criteria around dividend yield and consistency. The fund follows a passive investment approach and aims to mirror the performance of the BSE 500 Dividend Leaders 50 Index (Customised), subject to tracking error.
The fund is available to existing and new policyholders through select PNB MetLife ULIP plans.
Benefits of the PNB MetLife Dividend Leaders Index Fund
1. Exposure to Dividend-Focused Companies: The fund invests in companies drawn from the BSE 500 universe that have demonstrated a consistent history of dividend payments. These companies typically reflect mature business models and financial discipline, although dividend payments are not guaranteed.
2. Passive, Index-Based Investment Strategy: The BSE 500 Dividend Leaders 50 Index (Customised) follows a transparent, rules-based methodology that removes subjective stock selection. Periodic index reviews and rebalancing ensure the portfolio continues to align with dividend-focused criteria over time.
3. Diversified Sector Allocation: The index provides exposure across key sectors such as Energy, Information Technology, Commodities, Utilities, and Financial Services. This diversification helps reduce concentration risk while maintaining the fund's dividend-oriented objective.
4. Long-Term Wealth Creation Potential: Historical performance of the BSE 500 Dividend Leaders 50 Index indicates that reinvested dividends, reflected through the Total Return Index, can meaningfully enhance long-term returns. As of 31 December 2025, the BSE 500 Dividend Leaders 50 Index (Customised) has recorded a 5-year total returns CAGR of 30.65 percent as per Index provider's data. While past performance does not indicate future results, it highlights the compounding role of dividends over extended investment horizons.
5. Insurance and Investment in One Structure: Through the PNB MetLife Dividend Leaders Index Fund, investors can access market-linked equity exposure along with life insurance cover under a ULIP structure, subject to applicable policy terms and regulatory provisions. Dividends received from underlying companies are reinvested and do not result in direct payouts to policyholders.
Who Should Invest?
The PNB MetLife Dividend Leaders Fund may be considered by investors who:
* Seek long-term equity exposure through a passive, index-based strategy
* Prefer companies with a proven dividend-paying track record
* Are comfortable with equity market volatility and market-linked returns
* Have a medium- to long-term investment horizon of five years or more
The fund carries a Very High risk classification due to its equity exposure and may not be suitable for conservative investors.
The PNB MetLife Dividend Leaders Index Fund is available through select PNB MetLife ULIP plans via the company's official website (www.pnbmetlife.com) and direct offline channels.
Disclaimer:
* IN THIS POLICY, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. The unit-linked insurance products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender/withdraw the monies invested in Linked Insurance Products completely or partially till the end of the fifth year. TERMS AND CONDITIONS APPLY.
* For more details on risk factors, terms & conditions, please read the sales brochure before concluding any sale.
* PNB MetLife Dividend Leaders Index Fund (SFIN: ULIF03916/01/26DIVIDENDFN117) is a passively managed fund with the BSE 500 Dividend Leaders 50 Index (Customised) as its benchmark. *Customised index created and maintained by BSE Index Services Pvt. Ltd. for PNB MetLife India to meet IRDAI investment norms.
* NAV of Rs. 10/- will be applicable for duly completed proposals received from 16th to 29th January 2026 and issued on 30th January 2026.
* PNB MetLife India Insurance Company Limited (PNB MetLife) is one of the leading life insurance companies in India that combines the financial strength of MetLife, Inc. with the credibility of PNB, one of India's oldest nationalised banks. PNB MetLife's positioning, Milkar Life Aage Badhaein, is demonstrated through its customer-centric innovations and employee empowerment practices.
* With a strong presence in 182 branches and access to customers in over 20,000 locations through bank partnerships, PNB MetLife offers a comprehensive insurance solutions portfolio covering Child Education, Family Protection, Long-Term Saving and Retirement. The Company has a wide range of protection and retirement products available through its sales channel of over 36,000 financial advisors and multiple bank partners, and caters to over 585 group relationships in India.
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