Tata MF launches Dividend Yield Fund: This NFO (New Fund Offer) has opened. The fund is closing on 17 May. Let’s know all the things related to this …
Tata’s new scheme has opened for investment. Its name is Tata Mutual Fund Dividend Yield Fund. It will close on 17 May. The purpose of the new fund is mainly to invest in the shares of dividend paying companies and related products. So that, along with good returns to investors, regular dividend income will also be available. Experts say that dividend funds help investors reduce the risk of market fluctuations. These funds are always associated with those organizations, which have a good track record, so there is always scope for more good in the future.
Dividend Yield funds give good returns on long-term investment, as the fund manager invests only in the stocks of the country’s top companies.
When do you get dividend money
Mutual funds generally declare dividends every day, month, quarter or yearly. Dividend payment is not fixed.
This may vary from scheme to scheme. Every fund tries to maintain uniformity in the process of giving dividend according to its previous practice.
There is another option in dividend which is called dividend reinvested. In this, the investor gets the benefit of both growth and dividend.
The difference is that the dividend amount does not go into the investor’s pocket. Units are allotted to the investor in return. This option is quite beneficial in the long term.
Know about the scheme
Rahul Singh, CIO (Equity), Tata Asset Management, says that given the current valuation, there is a possibility of large volatility in the stock market. He says that is why we are launching a fund on this occasion, along with regular income of dividend, will help in increasing the capital as well.
Know about dividend
The dividend paid to the investors in the company’s total profits is called dividend. The dividend is given per share.
That is, the more shares an investor has, the higher the dividend amount will be.
Investing in a company with a consistently superior dividend record is considered safe.
Dividend Yield – Dividend Yield gives an idea of the safe return in the stock. The higher the dividend yield, the safer the investment will be.
Dividend Yield = Dividend X100 / Share Price per Share, Only companies with Dividend Yield above 4% are better based on Dividend
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