Dividend yield funds seen as stable option for sound risk-adjusted returns

Last Update Date: 06-10-2026

Published by Business Standard

Abhishek Kumar's role: Quoted

Abhishek Kumar cautioned that companies can change their dividend policies, said these funds can suit retirees and conservative investors, and suggested keeping them in the satellite part of an equity portfolio with a horizon of five years or more.

The article explains how dividend yield funds work, investing mainly in dividend-paying companies across market caps, and why they can hold up better in falling or sideways markets. It also covers their drawbacks, including slower growth, lagging in bull runs and sector concentration, and the investors they may suit.

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Dividend yield funds seen as stable option for sound risk-adjusted returns

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