Look at dividend yield schemes in volatile times
Investors looking for equity schemes with lower volatility and a more tax-efficient way to receive payouts by companies could consider dividend yield schemes. This category of funds invests in companies which pay higher dividends that have been in demand among investors of late with interest rates near record lows. Dividend yield schemes must not be confused with the dividend option available for fund categories.Aditya Birla Sun Life, UTI and ICICI Prudential and HDFC are among the asset managers that offer dividend yield funds. The new fund offer of Tata Mutual Dividend Yield is currently open for subscription.With the market recovery expected to be broad-based, fund managers believe dividend yield companies trading at attractive valuations could run up faster.“Dividend yield fund will be a blend of value and stable growth companies. With value coming back in the reckoning globally, we believe the dividend yield strategy will capitalise on the investment opportunities in that segment,” says Rahul Singh, chief investment officer, Tata Mutual Fund.
Look at dividend yield schemes in volatile times
Investors looking for equity schemes with lower volatility and a more tax-efficient way to receive payouts by companies could consider dividend yield schemes. This category of funds invests in companies which pay higher dividends that have been in demand among investors of late with interest rates near record lows. Dividend yield schemes must not be confused with the dividend option available for fund categories.Aditya Birla Sun Life, UTI and ICICI Prudential and HDFC are among the asset managers that offer dividend yield funds. The new fund offer of Tata Mutual Dividend Yield is currently open for subscription.With the market recovery expected to be broad-based, fund managers believe dividend yield companies trading at attractive valuations could run up faster.“Dividend yield fund will be a blend of value and stable growth companies. With value coming back in the reckoning globally, we believe the dividend yield strategy will capitalise on the investment opportunities in that segment,” says Rahul Singh, chief investment officer, Tata Mutual Fund.