Aditya Birla Sun Life Insurance Unveils Dividend Yield Fund Under ULIPs

Aditya Birla Sun Life Insurance Company Limited (ABSLI) has launched a new Unit-Linked Insurance Plan (ULIP) fund, named the Dividend Yield Fund, aimed at investors seeking regular income streams. The offering indicates an effort to broaden product options within its ULIP portfolio and cater to both protection and investment needs.

Key Features of the Fund

The Dividend Yield Fund will be made available to ULIP investors during the initial subscription window from November 6 to  November 20, 2025, at an initial NAV of ₹10.00 per unit. It is being offered under ABSLI’s “Wealth” product platform, aligning the insurance-investment with market-affiliate equity-income strategies.

The new fund targets long-term wealth creation by investing in high dividend-paying companies. It is offering 100% equity exposure, with at least 75% allocated to equity and equity-related instruments of dividend-yielding companies. The asset allocation of the fund comprises 80-100%  in equities and up to 20% in debt instruments, money market, and cash.

Implications and Outlook

This launch comes as ULIPs increasingly blend savings, insurance and investment functions. By offering a dividend-yield equity fund option, ABSLI addresses investors who favour periodic returns rather than pure capital-growth plays. The window, at a standard NAV, suggests a broad-based retail appeal. 

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Conclusion

With the new Dividend Yield Fund, ABSLI is expanding its ULIP product menu by adding an income-oriented option within an equity framework. Investors should assess the risk-return profile carefully, especially given the absence of yield guarantees and market-linked equity exposure.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.