Dayco Dividend Yield Model Portfolio

A Model Portfolio, i.e., a basket of securities, is prepared and launched as of 13 January 2026 (Tuesday), with an objective to provide regular income generation along with long-term capital appreciation. The portfolio is suitable for investors seeking steady dividend income, relatively lower volatility, and disciplined equity exposure.

Introduction

A Model Portfolio—a curated basket of securities—has been prepared and launched on 13 January 2026 (Tuesday). This portfolio is designed to provide regular income generation along with long-term capital appreciation for investors with a risk appetite ranging from conservatively moderate to moderately aggressive.

Portfolio Overview

• Launch Date: 13 January 2026.
• Investment Horizon: Long-term (3 to 5 years).
• Benchmark: BSE 100 India TR INR (Morningstar Valuation). Refer to Portfolio Research Report.
• Risk Level: Conservatively moderate to moderately aggressive.

Investment Objective

The Dayco Dividend Yield Model Portfolio aims to provide regular income generation along with long-term capital appreciation by selecting securities based on fundamental analysis. It is suitable for investors looking for moderate risk exposure with the potential for dividend income and moderate growth.

Disclosures

The Objective of the Model Portfolio is to provide balanced investment opportunities to a wide range of investors ranging from risk scores 35 to 64, with a risk appetite of conservatively moderate to moderately aggressive.

The long-term five-year average beta of the model portfolio is kept approximately at 1, the benchmark being the BSE 100 India TR INR in the Morningstar valuation.

The focus of the model portfolio is steady dividend income, wherein the stocks have been selected by the RA/IA division with a cut-off value for Earnings per share, Price to Earnings ratio, Price to Book Value Ratio, and Debt to Equity ratio, Dividend Yield and Beta as of the date of launch.

The data source for the fundamental ratios of the portfolio factsheet is prowess.cmie.com, and the portfolio research report have been sourced from Morningstar AWS as of the launch date.

Portfolio Methodology & Selection Criteria

Dividend Oriented Approach:  Stock selection is based on fundamental analysis, supporting stable dividend income.

Process: The model portfolio is constructed using a quantity-weighted allocation approach, where each security is assigned a defined number of units rather than a fixed value weight. This structure promotes portfolio stability, supports a long-term investment perspective, and helps minimise unnecessary churning by reducing frequent rebalancing driven by short-term price movements.

The portfolio is designed to operate within a target beta range of 0.95–1.05 to maintain the desired risk profile, and staying consistent with a moderately balanced investment objective. Security selection and position sizing follow a disciplined framework that balances growth potential with risk control, while avoiding excessive concentration in high-beta or overly defensive assets.

Selection Criteria: Securities included in the portfolio meet the following fundamental thresholds:

For Individual Stocks:

• Earnings Per Share (EPS) ≥ 12
• Price to Earnings (P/E) ≤ 65
• Price to Book Value (P/B) ≤ 12
• Debt to Equity (D/E) ≤ 1.75
• Dividend Yield > 0.15
• 0.4 <=BETA>= 1.5

For Portfolio:

• Portfolio Beta Range: The portfolio beta should remain within the range of 0.95 to 1.05 (Based on CMIE Prowess Data) on every portfolio review and rebalancing can be done, if necessary to achieve the objective.

Risk Classification: The weighted average beta of the portfolio is maintained at approximately 1, supporting a balance between risk and return.

Launch Date –  13 January 2026

Frequency of portfolio review and update

• End of Every Trading Day: Price-related updates.
• The Last Data Updation Date: 13/01/2026
• Quarterly: Fundamental information updates.
• Quarterly Review: Portfolio rebalancing, if necessary.

Labelling

The weighted average beta based on the quantity allocation of all portfolio stocks is approximately 1. It is labelled as Dayco Dividend Yield Model Portfolio.

Audit Requirements

Compliance with audit requirements under Regulation 25(3) of the RA Regulations shall also cover compliance with obligations set out under the model portfolio framework. The following have been adhered strictly and will be followed from time to time.