Aditya Birla Sun Life Insurance launches Dividend Yield Fund, more details

Aditya Birla Sun Life Insurance Company Limited (ABSLI), a venture between the Aditya Birla Group and Sun Life Financial Inc., Canada, has launched a Dividend Yield Fund as an investment option within its Unit Linked Insurance Plans (ULIPs). The new fund is available under the Wealth Infinia Plan, Vision Retirement Solution, and Nischit Wealth Solution, with subscriptions open from 6 November to 20 November 2025 at an initial price of ₹10 NAV per unit.

The Dividend Yield Fund is designed to generate returns through a diversified portfolio focused on financially strong and consistently profitable companies with scalable models and steady dividend distributions.

ABSLI said the fund offers up to 100% equity exposure, with a minimum of 75% invested in dividend-yielding equity instruments. The asset allocation policy enables 80–100% investment in equities and up to 20% in debt, money market instruments, and cash. The company highlights features such as high equity exposure, active fund management, portfolio diversification, and integrated life insurance coverage under the ULIP structure. The fund's approach seeks to balance growth, stability, and regular income for policyholders by targeting companies with strong fundamentals and high dividend potential.

ABSLI reported total assets under management of ₹1,04,492 crore as of 30 September 2025, reinforcing its position in the Indian life insurance sector, which continues to see robust competition from players such as HDFC Life Insurance and ICICI Prudential Life Insurance, both known for significant market shares and innovative product offerings.

ABSLI cautioned investors regarding the inherent risks of ULIP products, explicitly stating: "ABSLI reminded investors that ULIP products carry market-linked investment risks, and the investment risk is borne by policyholders." Furthermore, the company emphasises the contractual terms, with the direct statement: "Withdrawals or surrenders are not allowed during the first five years of the contract."

These warnings underscore the need for investors to assess their long-term risk appetite before participating in market-linked insurance-cum-investment propositions. The Dividend Yield Fund's initial offering period and risk disclosures are in line with present regulatory norms and industry practices.