> > *Dividend Yield Funds — Pipping broad markets * > > ** > > ** > > ** > > ** > > ** > * > ------------------------------ > **RETURNS TRACKER * > ------------------------------ > > > K. Venkatasubramanian > > Among the less noticed genre of funds, the dividend-yield ones as a > category have had a robust run, especially over the last three years. > > Over a one- and three-year timeframe, all the six funds in this category > have beaten indices such as the Sensex, Nifty and even the broader market > CNX 500. > > The average one- and three-year annualised returns at 29.4 percent and 8.8 > percent respectively are comfortably higher than the returns delivered by > the diversified equity fund category. > > Over the last one-year especially, the performance has been robust with the > returns ranging between 24 and 33 per cent across funds. Banks, consumer > non-durables, pharma and software companies tend to figure prominently in > their portfolios. > > Over one-, three- and five-year periods, funds that have consistently > bettered benchmarks by about 2-5 percentage points include UTI Dividend > Yield, Birla Sun Life Dividend Yield Plus and Tata Dividend Yield. > > After lagging behind in 2006, dividend-yield funds seem to have gotten > their act together . In the rally of 2007 and the protracted upswing from > March 2009, these funds have outperformed as a whole. > > In terms of containing downsides, again, end 2006 appears to be the > inflection point. In the correction of early 2007 and the long-drawn fall in > 2008-09, all of them held on to their NAVs better than the CNX 500. > > The portfolios of most of these funds are not restricted to mature > companies that declare dividends. Midcap stocks account for up to 50 per > cent of the overall pie for some of these funds. This explains the > outperformance in 2007, when midcaps were on a roll. > > During market corrections, especially during the October 2008 – March 2009 > period, dividend-yield funds moved to cash positions to the extent of 20 > percent of the portfolio. In fac,t UTI Dividend Yield and Birla Sun Life > Dividend Yield Plus were especially successful on this front as they fell > about 9 percentage points less than all the blue-chip indices. > > Outperforming sectors such as banks and pharma helped the rally in these > funds. Policy decisions on segments such as petroleum and fertiliser taking > a favourable turn in recent times has meant that these too figure among the > top few sectors held by dividend-yield funds. > > ** > > > http://www.thehindubusinessline.com/iw/2010/12/26/stories/2010122650560800.htm >
-- adbuth -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
