BSE 500 Dividend Leaders 50 Index

Table of Content

1. Unit Linked Insurance Plans (ULIPs)

2. What is the BSE 500 Dividend Leaders 50 Index?

3. What Makes the BSE 500 Dividend Leaders 50 Index Relevant?

4. BSE 500 Dividend Leaders 50 Index: Constituents and Selection Methodology

5. What are the Key Sectors in the BSE 500 Dividend Leaders 50 Index?

6. Stock Selection Criteria and Weighting Methodology for BSE 500 Dividend Leaders 50 Index

7. What are the Key Stocks under the BSE 500 Dividend Leaders 50 Index?

8. How has the Performance of BSE 500 Dividend Leaders 50 Index Been?

9. Index Fundamentals and Characteristics

10. How to Access Exposure to BSE 500 Dividend Leaders 50 Index through ULIP Fund Options?

11. Key Risks Associated with BSE 500 Dividend Leaders 50 Index

12. Frequently Asked Questions About BSE 500 Dividend Leaders 50 Index

13. Important Information About the Fund

The BSE 500 Dividend Leaders 50 Index is a rules-based equity index designed to measure the performance of companies in the BSE 500 Index that have consistently paid dividends over the past 10 years. The index evaluates eligible companies using dividend-yield-related parameters and assigns weights using a combination of float-adjusted market capitalisation and a normalised Z-score, subject to constituent-level capping under the index methodology.

Dividend consistency may reflect a company’s historical ability and willingness to distribute a portion of profits to shareholders. However, past dividend payments do not provide any assurance regarding future dividends, business performance, capital appreciation or investment returns.

Unit Linked Insurance Plans (ULIPs)

A Unit Linked Insurance Plan, commonly known as ULIP, is a life insurance product that provides life insurance coverage along with market-linked fund options. In a ULIP, a portion of the premium is used towards life insurance coverage and applicable charges, while the remaining amount is allocated to fund options chosen by the policyholder, subject to the product terms and conditions.

ULIPs are different from traditional insurance products and are subject to market risks. The value of units may go up or down depending on the performance of the underlying fund and factors influencing capital markets. Policyholders should understand the associated risks, applicable charges, lock-in period, policy terms and fund objectives before making any decision.

HDFC Life Top 500 Dividend Leaders Advantage Fund (SFIN: ULIF09005/09/26DivLdrAdFd101), benchmarked to the BSE 500 Dividend Leaders 50 Index, would be made available under the following Unit Linked Insurance Products:

• HDFC Life Smart Protect Plus (UIN: 101L187V03)

• HDFC Life Sampoorn Nivesh Plus (UIN: 101L180V01)

• HDFC Life Click 2 Wealth (UIN: 101L133V03)

• HDFC Life Click 2 Invest Plus (UIN: 101L191V01)

What is the BSE 500 Dividend Leaders 50 Index?

The BSE 500 Dividend Leaders 50 Index is designed to identify 50 companies from the BSE 500 universe that have consistently paid dividends over the past 10 years. It follows a defined, rules-based methodology for eligibility, selection, weighting and periodic review.

As per the July 2026 factsheet, the index has the following key details:

Source: BSE Index Services Pvt. Ltd., BSE 500 Dividend Leaders 50 Index Factsheet, July 2026. https://www.bseindices.com/Downloads/Factsheet/Factsheet_BSE500DividendLeaders50_Jul2026.pdf

What Makes the BSE 500 Dividend Leaders 50 Index Relevant?

The index follows a dividend-focused approach within the broader BSE 500 universe. Dividend payments represent a distribution of a company’s profits to shareholders. A history of consistent dividend payments may indicate that a company has generated profits and cash flows over time and has followed a policy of sharing a portion of those profits with shareholders.

The index looks at dividend-related measures through a rules-based methodology rather than relying only on a single recent dividend observation. It also combines dividend-related scoring with float-adjusted market capitalisation and applies capping rules to manage concentration at the constituent level.

However, investors should note that dividends are declared at the discretion of individual companies and may be reduced, suspended or discontinued. A company may report a high dividend yield because its share price has fallen or because of temporary factors. Therefore, dividend history and dividend yield should not be interpreted as an assurance of company quality, lower risk, future dividends or positive returns.

BSE 500 Dividend Leaders 50 Index: Constituents and Selection Methodology

The index draws its universe from the BSE 500. Eligible companies are assessed using the applicable listing, trading, liquidity and dividend-related requirements specified in the BSE Indices Methodology.

The index is designed to select the top 50 eligible companies based on dividend-yield-related parameters. The methodology uses the average dividend yield over the previous three years together with the latest one-year dividend yield in the calculation, helping reduce reliance on the dividend yield of a single period. Selected constituents are weighted using float-adjusted market capitalisation and a normalised Z-score, subject to capping rules.

The index is reconstituted annually in December. This periodic review allows the constituent list and weights to be updated in line with the index methodology and the latest eligible data. The explanation above is a simplified summary. The complete BSE Indices Methodology and official index notices will prevail in case of any difference.

What are the Key Sectors in the BSE 500 Dividend Leaders 50 Index?

The sector composition of the index may change after each annual reconstitution depending on the companies that qualify under the index methodology and subsequent market movements.

As per the July 2026 factsheet, the index has exposure across sectors including Energy, Information Technology, Commodities, Utilities, Financial Services, Consumer Discretionary, Fast Moving Consumer Goods, Services, Industrials and Healthcare.

Source:https://www.bseindices.com/Downloads/Factsheet/Factsheet_BSE500DividendLeaders50_Jul2026.pdf.

Stock Selection Criteria and Weighting Methodology for BSE 500 Dividend Leaders 50 Index

The BSE 500 Dividend Leaders 50 Index uses dividend-related criteria to identify eligible companies within the BSE 500 universe. The methodology is designed around companies that have consistently paid dividends over the past 10 years and evaluates dividend yield using both recent and multi-year information.

The methodology generally considers:

• Membership of the eligible BSE 500 universe

• Applicable listing history, trading and liquidity requirements

• Consistency of dividend payments over the prescribed period

• Average dividend yield over the previous three years

• Latest one-year dividend yield

• Float-adjusted market capitalisation and normalised Z-score for weighting

• Constituent-level capping under the index methodology

The index is not weighted only by dividend yield or only by market capitalisation. Its weighting approach combines company size and dividend-related characteristics while applying capping rules to manage excessive constituent concentration.

What are the Key Stocks under the BSE 500 Dividend Leaders 50 Index?

The stocks and their weights may change because of annual reconstitution, corporate actions and market movements. Therefore, the list below should be understood as a point-in-time view and not as a permanent set of constituents.

As per the July 2026 factsheet, the top constituents by weight are:

Source:https://www.bseindices.com/Downloads/Factsheet/Factsheet_BSE500DividendLeaders50_Jul2026.pdf.

How has the Performance of BSE 500 Dividend Leaders 50 Index Been?

The BSE 500 Dividend Leaders 50 Index has price return and total return variants. The price return variant reflects changes in constituent prices, while the Total Return Index includes the effect of dividend reinvestment.

As per the July 2026 factsheet, the performance of the BSE 500 Dividend Leaders 50 Total Return Index is as follows:

Data as per the July 2026 BSE Index Services factsheet. Returns for periods exceeding one year are annualised. Source: BSE Index Services Pvt. Ltd.

Performance disclosure

The BSE 500 Dividend Leaders 50 Index was launched on 9 May 2025. Historical information for periods before the index launch date is back-tested and hypothetical and is not actual live index performance. Back-tested performance has inherent limitations. The figures shown are benchmark index returns and not the returns of the HDFC Life Top 500 Dividend Leaders Advantage Fund or any HDFC Life ULIP. Past performance is not indicative of future performance.

Index Fundamentals and Characteristics

As per the July 2026 factsheet, the index fundamentals are:

The index characteristics are:

These are point-in-time index-level indicators and are subject to change. Dividend yield is not a forecast or assurance of income, fund distributions, capital appreciation or future returns.

How to Access Exposure to BSE 500 Dividend Leaders 50 Index through ULIP Fund Options?

A market index cannot be purchased directly. Policyholders may obtain exposure to an investment strategy benchmarked to the BSE 500 Dividend Leaders 50 Index through a Unit Linked Insurance fund option, subject to product availability, policy terms and applicable regulations.

Before selecting any ULIP fund option benchmarked to this index, policyholders should review:

• Product name and UIN

• Fund name and SFIN

• Fund objective and benchmark

• Asset allocation and risk profile of the fund

• Applicable charges

• Premium payment term and policy term

• Mandatory lock-in period

• Switching options, if available

• Life insurance coverage

• Tax implications

• Policy exclusions, limitations and conditions

A ULIP should be selected based on the policyholder’s financial goals, risk appetite, life insurance needs and investment horizon. It should not be considered a short-term product because linked insurance products have a mandatory five-year lock-in. The fund is aligned with the benchmark but may not replicate it exactly. Fund returns may differ because of asset allocation, portfolio construction, permitted instruments, cash holdings, charges, expenses, transaction timing and other factors.

Key Risks Associated with BSE 500 Dividend Leaders 50 Index

The BSE 500 Dividend Leaders 50 Index is an equity market-linked benchmark and is subject to market risks. The performance of any fund benchmarked to the index will depend on market conditions, constituent performance, sector allocation and the fund’s investment approach.

Market risk: Equity markets may fluctuate because of economic, political, global, regulatory, sector-specific or company-specific developments.

Dividend-theme risk: Companies selected for historical dividend consistency may underperform other investment styles or the broader equity market during certain periods.

Dividend reduction risk: Constituent companies may reduce, suspend or discontinue dividends. Historical dividend payments do not assure future dividends.

Dividend-yield interpretation risk: A high dividend yield may arise because of a decline in share price or temporary factors and does not by itself indicate financial strength or future return potential.

Sector concentration risk: The index may have higher exposure to certain sectors at a particular time, which can affect performance if those sectors underperform.

Stock concentration risk: Despite constituent-level capping, movements in larger-weight constituents may materially affect index performance.

Reconstitution risk: Constituent additions, deletions and weight changes during index reviews may affect index exposure and performance.

Tracking difference risk: A fund benchmarked to the index may not replicate index returns because of expenses, charges, cash holdings, execution timing and portfolio-construction differences.

Back-tested data limitation: Index results before the index launch date are hypothetical and should not be treated as actual live performance.

Frequently Asked Questions About BSE 500 Dividend Leaders 50 Index

What is the BSE 500 Dividend Leaders 50 Index?

The BSE 500 Dividend Leaders 50 Index is a rules-based equity index designed to measure the performance of 50 companies from the BSE 500 universe that have consistently paid dividends over the past 10 years, subject to the index methodology.

What is the core theme of the index?

The core theme is dividend consistency. The index focuses on eligible companies with a history of dividend payments and uses dividend-yield-related parameters within a defined selection and weighting methodology.

How many stocks are part of the index?

As per the July 2026 factsheet, the index has 50 constituents.

How often is the index reconstituted?

The index is reconstituted annually in December. Constituents and weights may change at each review.

How are companies weighted in the index?

The index uses a capped weighting approach based on float-adjusted market capitalisation and a normalised Z-score, subject to the detailed BSE Indices Methodology.

Does “Dividend Leaders” mean that regular dividends are guaranteed?

No. The term describes historical dividend-payment characteristics used under the index methodology. Companies may reduce, suspend or discontinue dividends. Neither the index nor the HDFC Life fund assures regular dividends or income.

Can I invest directly in the BSE 500 Dividend Leaders 50 Index?

No. An index cannot be purchased directly. Policyholders may access a fund option benchmarked to the index through an eligible Unit Linked Insurance Product, subject to product availability, terms and applicable regulations.

What is the difference between Price Return and Total Return Index values?

The Price Return Index reflects constituent price movements. The Total Return Index additionally assumes reinvestment of dividends. Neither represents an investor’s product return after charges, taxes and other expenses.

Are returns of the index guaranteed?

No. The index is market-linked and does not offer assured or guaranteed returns. Past performance, including back-tested performance, is not indicative of future performance.

Are historical index returns the same as fund returns?

No. Historical index returns are benchmark returns and not the performance of the HDFC Life Top 500 Dividend Leaders Advantage Fund. The fund is new and has no performance history before launch. Its returns may differ from the benchmark.

What are the key risks of a fund benchmarked to this index?

Key risks include equity-market volatility, dividend-theme underperformance, reduction or discontinuation of dividends, sector and stock concentration, reconstitution risk, tracking difference and the limitations of back-tested data.

Important Information About the Fund

Investment Objective:

HDFC Life Top 500 Dividend Leaders Advantage Fund aims to generate long-term capital appreciation by investing in a diversified portfolio of equity and equity-related securities aligned to the BSE 500 Dividend Leaders 50 Index, subject to applicable regulatory requirements. The fund may use derivative instruments or other permitted equity instruments to calibrate risks in the portfolio.

Investment Strategy:

The fund follows a passive investment approach and seeks to remain aligned to the BSE 500 Dividend Leaders 50 Index. The fund’s portfolio and returns may differ from the benchmark because of asset allocation, permitted instruments, cash holdings, expenses, charges, liquidity, transaction timing and other factors.

Asset Allocation:

^*May include Equity ETFs, equity derivatives and any other equity instrument permitted under applicable regulations.

Fundamental Attributes and Risk Profile:

The fund will predominantly invest in equity and equity-related securities, which are market-linked and may be subject to significant price fluctuations. Investments in money market instruments, liquid mutual funds, government securities and corporate bonds may be subject to interest-rate, credit, liquidity and reinvestment risks.

Risk Level: Very High

The fund is suitable for policyholders who understand equity-market volatility, have a long-term investment horizon and are comfortable with a Very High level of risk. The fund does not offer assured or guaranteed returns.