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Understanding Dividend Yield Mutual Funds and Their Advantages

22 Aug 2024

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Dividend Yield Mutual Fund Funds

Dividend Yield Mutual Funds invest in companies that regularly pay out dividends, which are a portion of the company's profits. These companies are usually more stable, better managed, and less volatile than those that don't pay dividends. For investors seeking exposure to quality, reliable companies with lower volatility, Dividend Yield Mutual Funds can be a suitable option.

These companies are usually better at generating cashflows, leading to better financial management.

Return on Capital Employed (ROCE) for these companies is higher as idle cash is distributed.

These companies are usually stable and exhibit lower volatility during market fluctuations, thereby safeguarding investors' capital.

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Who Should Invest?

Investors who want to create wealth in the long term and are willing to stay invested for 3 years or more.

Investors who want to diversify their existing portfolio by investing in high quality and dividend paying companies.

Investors looking for a better risk-return trade off.


Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The information provided is generic in nature and is for informational purpose only. Please consult your financial advisor before taking any decision.

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    The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

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