Financial Daily from THE HINDU group of publications
Friday, Jun 17, 2005
Financial Daily from THE HINDU group of publications Friday, Jun 17, 2005 |
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Markets
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Mutual Funds Dividend yield funds are a hit with investors Nilanjan Dey
Kolkata , June 16 DIVIDEND yield is turning out to be a major attraction for investors in the world of asset management companies, the recent increase in the sizes of funds based on this concept has established. With a couple of new schemes expected to materialise soon, dividend yield funds are a fast advancing genre with more assets under their management than ever before. The two new proposals, mooted by ABN Amro MF and ING Vysya MF, will add to a category already populated by funds managed by Birla MF, Principal MF, Tata MF and UTI MF. Birla Dividend Yield Plus, the first to make a foray into this space, has grown to Rs 689 crore from about Rs 50 crore since its launch in February 2003. Its introduction helped spawn the others - Principal (Rs 268 crore), Tata (Rs 333 crore) and UTI (Rs 692 crore). All figures pertain to end-May. According to Mr Shyam Bhat, who manages Principal Dividend Yield Fund, funds based on the concept are diversified in nature - as a quick look at their portfolios will indicate. The fact that they maintain broadbased portfolios makes them all the more suitable for investors who need capital growth along with a measure of protection through income accrual, he pointed out. The Principal scheme has taken exposure to stocks such as GE Shipping, Cummins, Indian Oil and Ballarpur Industries. Mr Ravi Sharma, Vice-President, Marketing of Birla MF, said dividend yield has a special appeal, especially for investors who are keen to take home something other than capital appreciation. This, he felt, is reflected in the quick increase in the asset base of the scheme. The latter, incidentally, has paid a number of dividends since inception. Birla Dividend, which says it tries to create a portfolio of high dividend paying companies, has investments in the likes of Hero Honda, Vijaya Bank, Tata Chem, Alfa Laval and Crompton Greaves - all of them known for the payouts made to shareholders. Meanwhile, the offer documents prepared by ABN Amro and ING Vysya are with SEBI at the moment.
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