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A thematic equity fund following dividend yield investing strategy
- The Fund uses the dividend yield as the basic filter and analyses other fundamental factors to ascertain the intrinsic value and the possibility of capital appreciation, while constructing the portfolio. - The Fund predominantly invests in dividend yielding equity and equity related securities. - In addition to "dividend yield", the fund would also look parameters such as, but not limited to, cash flow generation, management quality, earnings growth prospects, industry scenario, etc. - The Fund has flexibility to position itself actively across the market cap spectrum.
W.e.f. 02-09-2009 - Exit load : 1% if redeemed before 1 year from the date of investment.
SWP/Redeem/SIP/STRIP/Switch
Not Applicable
Equity and equity related instruments (minimum 65% of the total assets would be in equity and equity related instruments of dividend yielding companies): 65-100% (Medium to High) Debt and Money Market instruments including securitized debt#: 0-35% (Low to Medium) Units issued by REITs & InvITs: 0-10% (Medium to High) # The fund may invest up to 50% of its debt portfolio in securitized debt.
The objective of the scheme is to generate long term capital appreciation and income by investing predominantly in dividend yielding equity and equity related securities. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.
Dividend Yield
An open ended equity scheme predominantly investing in dividend yielding stocks
- The Fund follows the Growth At Reasonable Yield Style (GARY) that uses both the current dividend yield and the potential earnings growth, while constructing the portfolio. - Multi-cap offering focusin on free cash flows, dividends and the growth in dividends - Emphasis on quality businesses with high/improving return ratios - Diversification across sectors & market caps - Bottom-up approach in stock picking
This product is suitable for investors who are seeking*: Long term capital appreciation. Investment predominantly in dividend yielding equity and equity related securities. Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
- Investors looking to supplement their core equity portfolio with a differentiated portfolio strategy - Investors looking to increase their equity allocation with an intention of relative downside protection over medium to long term - Investor looking for a twin benefit of capital appreciation as well as dividend yield
An open-ended equity scheme predominantly investing in dividend yielding stocks. The Fund endeavor to pick quality businesses and is diversifed across sectors and market capitalisation.
Dividend Yield Funds are equity funds which predominantly invest in equity and equity-related instruments of companies which are known to declare regular dividends.
- The Fund endeavour to benefit from investing primarily in dividend yielding equity shares at the time of investment.
- Dividend yielding stocks tend to have a higher downside protection and being rich in cash generations from its business would result in a fair amount of stability and less volatile over other type of funds, such as style based or market cap based funds.
- Probable twin benefit of capital appreciation as well as dividend yield from the fund.
Investing in UTI Dividend Yield Fund is very simple. Investors can simple log on to utimf.com or use UTI Buddy Application and start investing subject to KYC compliance. Investors may also approach nearest UTI Financial Centers (UFCs). Alternatively, you may also approach mutual fund distributors, financial advisors or various online platform for investments.
- A stream of high dividends can indicate steady cash-flows in the form of regular dividend income
- Typically, dividend yielding companies can be associated to organisations that have a proven track record, hence could be shield against risk of market volatility and drawdowns could be limited
- Suitable for investors looking for wealth creation over medium to long term and also looking for an equity fund with relatively lower volatility.