Dividend time: Should you go through mutual funds?
Apr 02, 12:04

Towards the end of the financial year many listed companies announce their plans to pay dividend. Though dividends are welcome, that should not be the only reason to buy a stock. Though high dividend yield, computed by dividing dividend per share by price of the share, can be a good starting point in identifying a good stock, investors have to consider stock fundamentals. Dividend yield funds, which predominantly invest in dividend yielding stocks, help you do that in a professional manner. According to Association of Mutual Funds in India, as on February 28, 2022 eight dividend yield funds managed assets worth Rs 9,536 crore. Staggered investments in equity funds help reduce timing risk.