Investing is usually associated with waiting: your money works, while the result comes later. And this is understandable — when deciding to invest, people most often think about the future: accumulating, preserving and growing their wealth. But with experience comes another need — not only to wait for the final result, but also to generate income throughout the investment period.
That is why the approach to portfolio construction is changing. Investments are increasingly viewed not as individual decisions, but as a system in which each instrument has a specific role — working not only “for later”, but also contributing to financial stability here and now.
This approach creates demand for instruments that combine investing with regular cash flows. The “OTP Dividend” unit investment fund was created precisely for this purpose — as a solution for generating dividend income as part of a long-term investment strategy.
Why investors are increasingly choosing dividend solutions
When a portfolio evolves from spontaneous investments to a more deliberate approach, investors face a practical question: how can investments generate a predictable cash flow?
This is where attention increasingly shifts towards dividend strategies. They allow investors to receive income while holding assets — without the need to constantly make decisions about exiting an investment, taking profits or reinvesting funds.
For many investors, dividend solutions are becoming a way to integrate investments into everyday financial planning: understanding when and how much income will be received and planning expenses accordingly.
Importantly, a dividend strategy does not compete with other investment objectives. It does not replace instruments focused on capital growth or preservation, but complements them — as a separate portfolio component specifically responsible for generating regular income.
A detailed overview of approaches to generating regular income and building a stable financial cash flow can be found in the article: How to Organize Regular Income: Make Your Money Work for You All the Time. In this article, we will focus on a specific instrument that puts this approach into practice.
OTP Dividend: How the Fund’s Dividend Model Works
The unit investment fund “OTP Dividend” is a relatively new financial product in the portfolio of OTP Capital (launched in January 2026). It was created for investors who want their investments not only to work towards a long-term goal, but also to generate regular income throughout the investment period. The fund has a clearly defined role in a portfolio — generating a dividend cash flow with a controlled level of risk.
Unlike traditional investment solutions, where returns are primarily realized when an investment is exited, the fund’s dividend model takes a different approach. Investors receive financial returns throughout the investment period — in the form of regular dividend payments twice a year.
This means that the investment works not only “for the future”, but also towards current financial goals: budget planning, reinvesting income or building a stable financial reserve without the need to actively manage the portfolio on an ongoing basis.
Investment Strategy of the Fund
The investment strategy of the “OTP Dividend” fund is based on domestic government bonds (OVDPs) — an instrument traditionally used to generate stable and predictable income in UAH.
The fund primarily invests in medium-term OVDPs (2–3 years), while only a small portion is held in short-term bonds (up to 1.5 years). This allocation is not fixed — the team regularly reviews it depending on market conditions, including changes in interest rates and the overall economic environment. The asset management company actively manages the portfolio, balancing different bond issues so that the result does not depend on a single decision or one-off market fluctuation.
This approach makes it possible to focus on systematic income generation based on a predictable investment logic and a low level of risk.
The fund does not aim to maximize short-term returns. Its focus is on predictability, discipline and long-term stability.
The fund’s tax efficiency is also worth noting. Income received in the form of dividends is taxed at a rate of 9% personal income tax (PIT) (+ military levy), while most traditional financial instruments are subject to the standard 18% PIT rate. As a result, the investor simply receives more net income.
Actual and Expected Fund Performance
The practical results of the “OTP Dividend” fund confirm the rationale behind the selected strategy.
For the first investment period (January 2026 – July 2026), the return exceeded 16% per annum.
The next investment period starts in July, with the subscription window set from 16 July 2026 to 7 August 2026. During this period, investors can join the fund and benefit from the selected investment strategy and the fund’s terms and conditions.
You can receive a consultation regarding the fund and its investment terms by completing the form on our website: Consultation.
What It Looks Like in Practice: An Income Calculation Example
To better understand the potential result, let us consider a basic example of investing in a unit investment fund based on the results of the previous period.
Example of income calculation for the “OTP Dividend” fund:
Suppose an investor invests UAH 500,000 in the fund for one year at an estimated projected return of 16% per annum.
Pre-tax income: UAH 500,000 × 16% = UAH 80,000
Tax burden:
- PIT: 9% — UAH 7,200 (instead of UAH 14,400)
- Military levy: 5% — UAH 4,000
Total taxes: UAH 11,200 (saving UAH 7,200)
Investor’s net income from the fund: UAH 68,800
Important: to start investing in the “OTP Dividend” fund, an investment of at least UAH 100,000 is recommended. At this level, the investment begins to work as part of a diversified portfolio and allows investors to experience the effect of regular investment income in practice, rather than just in theory.
How to Invest
Investing in the “OTP Dividend” fund is quite simple. To join the fund, just follow a few steps:
- Review the fund’s terms and documents: the fund regulations and prospectus.
- Decide on the amount of your investment.
- Complete the invest online form.
- Enter your contact details.
- Sign the documents and purchase the securities remotely.
Before making the first purchase transaction, you also need to:
- Open a securities account with the KINTO depository institution — online purchase and sale of securities of OTP Capital funds is carried out through KINTO. Investment certificates will be held in this account.
- Sign a General Agreement, which defines the procedure for carrying out all purchase and sale transactions involving investment certificates of OTP Capital funds.
All steps can be completed remotely, including electronic identification through the Diiaapp.
Once the procedure is completed, the funds are invested in accordance with the fund’s strategy, and the investor receives regular dividend payments.
Securities can also be purchased at an OTP Bank branch.
Summary
In a diversified investment portfolio, each instrument has its own role.
“OTP Dividend” is a solution for the part of a portfolio where regularity, financial discipline and predictable cash flow are important.
Please note that the return on investments made in the stock market may increase or decrease, and past investment performance does not guarantee future returns.
Frequently Asked Questions
What is a unit investment fund (UIF)?
A unit investment fund is a form of collective investment in which the funds of multiple investors are pooled and invested in various financial instruments under the management of a professional asset management company. Each investor owns a share of the fund and receives income proportionally to their investment.
How does a UIF differ from a deposit?
A deposit offers a fixed interest rate and guaranteed income from a bank.
A UIF is an investment instrument whose return is generated by market assets (in the case of “OTP Dividend” — primarily OVDPs) and may be higher than deposit rates, but is not fixed.
What is dividend income in a fund?
Dividend income is regular payments to an investor generated from income earned on the investments held in the fund’s portfolio. In the “OTP Dividend” fund, these payments are made twice a year in accordance with the investment strategy.
How often is income paid in the “OTP Dividend” fund?
Dividend payments are made twice a year, based on the results of the investment period.
What is the minimum investment amount in the fund?
Investments of UAH 100,000 or more are recommended, as this is the level at which the effect of investing becomes more tangible.
Can you lose money in a UIF?
Like any investment instrument, a UIF does not guarantee a fixed return. The result depends on market conditions. At the same time, portfolio diversification and investments in OVDPs help reduce the level of risk.
Do I need to manage my investments myself?
No. The fund is managed by the professional asset management company OTP Capital, which is responsible for portfolio construction, rebalancing and implementation of the investment strategy.
How can I withdraw money from the fund?
An investment can be exited in accordance with the terms published on the OTP Capital website. The investor submits an application to sell investment certificates during specifically designated periods.
Is the fund suitable for passive income?
Yes. The fund can be considered an instrument for generating passive income, as it provides regular dividend payments and does not require active management by the investor.
Is income from the fund taxable?
Yes. Income received in the form of dividends is taxed at 9% PIT + 5% military levy, which is lower than the standard taxation applied to most financial instruments.
