123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Education >> View Article

An Introduction To Dividend Yield Funds

By Author: Artham Vidya
Total Articles: 24

Companies that have a stable business and a good track record in performance are also known for paying out dividends regularly. The stocks of such companies that consistently declare high dividends are known as high dividend yield stocks. Compared to growth companies, which need to use their surplus profits to reinvest in their business to fuel growth, established companies, which are past the growth stage and are in consolidation phase can afford to reward their shareholders by paying out excess profits in the form of dividends.

Mutual fund schemes that invest in the stocks of such high dividend paying companies are called dividend yield schemes as they play on the dividends declared every year by such companies.

Why should you look at Dividend Yield Mutual Funds?

When you invest in a mutual fund scheme, you are normally looking either for appreciation in your portfolio or a regular income. Therefore, when you invest in a mutual fund scheme that has high dividend yield stocks in its portfolio you are providing an insurance against market volatilities and fluctuations.

A quick analysis of such dividend yield mutual funds have shown that they provide moderate but consistent returns even when the markets are very uncertain. In fact over a period of five years or so such schemes outperform large caps, mid-caps and multi-cap funds since tend to depreciate less when the market is in correction mode. They can be used as a defensive element especially the market sees steep spikes and sharp falls.

What makes these schemes so attractive is their ability to generate balanced returns irrespective of any market condition.

Bottomline: Dividend Yield funds deliver moderate but stable returns over longer periods.

Total Views: 86Word Count: 280See All articles From Author

Education Articles

1. Data Science Is Increasing Extensively And It Is Everywhere
Author: analyticspath

2. Why I Should Join Digital Marketing Training In Bhopal
Author: Sanjay Burman

3. How To Write Pertinent Assignments
Author: Jessica Gross

4. Digital Marketing Trend In 2018
Author: TOPS Technologies

5. Top 10 Digital Marketing Tools
Author: Learn Vern

6. Latest Cisco 200-125 Exam Dumps 2018
Author: Emma

7. Simple Mule Esb Interview Questions |bytes Online Training
Author: Rahul Tandale

8. The Right Place To Get Your Get Your Engineering Degree
Author: ponting brown

9. Open Gateways To Your Dream Mba Programmes At Symbiosis With Snap!
Author: Mohan Patil

10. Optimising Keywords With Seo Training Institute In Mumbai
Author: Jayesh Jagtap

11. Empower Your Skills With Ethical Hacking Training Program
Author: Multisoftsystems

12. Learn Web Designing Courses In Chandigarh
Author: James Digosta

13. Different Courses And Programmes Of Learning Chinese Language.
Author: Michel Kern

14. How To Install Windows On A Mac With Boot Camp (boot Camp Software)
Author: Infocampus

15. What Should You Do When Receive A Message “macro Is Disabled Due To Security Settings?”
Author: Multisoft Virtual Academy

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: