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.
More of Abhishek's views on mutual funds
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