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| Posted: 06 Jul 2014 06:00 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
High Dividend Yield Stocks
A conservative approach, but benefits investors especially during bear phase
As investors we often use the terms savings and investments interchangeably --that is to use one's extra money for some gains. However, there is a fine line which differentiates savings from investments.
After a strong rally since late April, the stock market has again turned volatile with the sensex mostly hovering around the 25,000 mark for the last few weeks. In such volatile times, investors could look at stocks with high dividend yields.
Dividend yield is the amount of dividend per share divided by the price of that share. The higher the dividend yield, better it is for investors to invest in the stock. In times when the stock market is going down, any drop in the price of the stock that is paying a dividend leads to higher dividend yield. This in turn attracts more investors, which often reverses the falling trend in the stock even if the market is still falling.
Say for example, a company, say A, pays a dividend of Rs 10 per share. Price of stock A is Rs 100. So the dividend yield for the stock is 10.
There are investors who target to invest in companies that pay higher dividend. Although this investor trait is more pronounced in the developed market, where the rate of interest is low, but in India too there are investors who follow this strategy , if not for a large corpus, at least they prefer to put some money in high dividend stocks.
A strategy to target high dividend stocks has two advantages, financial planners say . For one, this is a conservative approach with less chance of a loss. Secondly, this also brings in a process of asset allocation which is in-built and self correcting. In a rising market, with higher stock price, dividend yields automatically fall, while in a falling market, dividend yields rise.
It is also seen that during market volatility , the value of dividend income rises even more. It is observed that in volatile markets as investors become more doubtful about any rise in stock prices and they fear about losing money , they rely more on dividend incomes. Market players say in such conditions investors should look at investing in high dividend paying stocks that have the ability to provide a cushion against sharp market downturn by assuring an income stream.
There are some basic principles these schemes follow. First, since dividend yield of a stock is inversely proportional to its price, the fund manager selects stocks with higher dividend yields. Next is to consider companies with high cash flow, which is to guarantee the ability of the company to pay dividend. Usually, companies with stable businesses and growing at an above average rate are more likely to pay a good dividend. The third attribute is to look for stocks with a history of dividend payment.
Historical studies have shown that dividend yield funds usually do well in all type of market conditions except when there is euphoria on the bourses. So in a euphoric market, there are chances that dividend yield schemes may lag in their performance compared to other equity schemes. However, a positive attribute for dividend yield schemes is that studies have shown net asset values (NAVs) of dividend yield funds show lower fluctuations compared to NAVs of most other types of equity funds.
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
Leave a missed Call on 94 8300 8300
Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
--------------------------------------------- Invest Mutual Funds Online
Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms ---------------------------------------------
Best Performing Mutual Funds
B. Large and Midcap Funds Invest Online
C. Mid and SmallCap Funds Invest Online
D. Small and MicroCap Funds Invest Online
E. Sector Funds Invest Online
F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver
G. Gold Mutual Funds Invest Online
H. International funds Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. FT India Feeder Franklin US Opportunities 4. ICICI Prudential US Bluechip Equity 5. Motilal Oswal MOSt Shares NASDAQ-100 ETF             | ||||||||||||||||||||||||||||
| Posted: 05 Jul 2014 09:10 PM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
BNP Paribas MIP Fund dividend
BNP Paribas Mutual Fund has announced dividend under the following schemes:
The record date has been fixed as June 27, 2014.
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
Leave a missed Call on 94 8300 8300
Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
--------------------------------------------- Invest Mutual Funds Online
Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms ---------------------------------------------
Best Performing Mutual Funds
B. Large and Midcap Funds Invest Online
C. Mid and SmallCap Funds Invest Online
D. Small and MicroCap Funds Invest Online
E. Sector Funds Invest Online
F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver
G. Gold Mutual Funds Invest Online
H. International funds Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. FT India Feeder Franklin US Opportunities 4. ICICI Prudential US Bluechip Equity 5. Motilal Oswal MOSt Shares NASDAQ-100 ETF      | ||||||||||||||||||||||||||||
| Posted: 05 Jul 2014 06:30 PM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
Are you investing or saving?
If you are one individual who saves 20-30% from your income and feel content about it, I have a game for you. Imagine you are sitting in a time machine and carrying a hundi in which you have put all your savings. Now, this machine has taken you to the future where you have just got retired.
Open your hundi now and look at what you have got. Consider 6% inflation rate while making these calculations. You will see some amount as your retirement fund, right? Determine how you are going to manage your expenses post retirement. Do you see what you hoped to see? Nope, right? You will also understand that this is definitely not sufficient to live even a normal life.
So, what went wrong? Why is there is a significant difference in retirement funds? Let me explain it further. Foremost among all, you must understand the difference between saving and investing? I can hear you asking, is there REALLY a difference between saving and investing? Well, read ahead to learn it appropriately.
What is saving?
What is investing?
The investing is nothing but growing your savings by means of various processes like fixed deposits, stock market, mutual funds and buying various investment instruments and products.
Still, feeling confused. Let me explain it with a simple example.
Let me put it more clearly now. Consider your savings as raw materials and investing as a process with which you will grow your money.
Why should one give too much importance to investing?
Financial plan to achieve your long term goals:
Disciplined Investment Model: You need to be extremely patient while investing regularly and religiously to retrieve huge returns. Remember, savings and investing are the two sides of the coin. Savings will help in creating your future goals confidently, but remember, investing is what will take you to achieve these goals. Merely saving a percentage from your income will not yield any results. Create a disciplined investment model and follow it religiously.
Control Expenses to Generate Savings: Monitor and control your expenses. You can control expenses by limiting the usage of credit cards, paying bills on time and using the resources appropriately. Cut down unnecessary expenditure which will generate more revenue to your savings. Further when you invest more from your savings, you will be able to grow and achieve huge returns.
Save regularly and keep investing for a long period of time: It is very important for you to save regularly, that too, for a long period of time. For example, decide about buying a house in 5 years down the lane as soon you start earning. Invest wisely during the interim period to yield the money you want at the end of five years. Remember to consider the inflation and invest wisely. Once the house is bought, set a goal for the next big investment and continue with saving and investing in order to achieve your goal.
Now, go back to the game we played initially. Get inside the time machine and go to the imaginary world of your retirement period now. Make the same calculations as we did earlier. Isn't it looking, smelling and feeling great? Yes, saving and investing wisely, religiously and appropriately will lead you to a great future and retired life.
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
Leave a missed Call on 94 8300 8300
Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
--------------------------------------------- Invest Mutual Funds Online
Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms ---------------------------------------------
Best Performing Mutual Funds
B. Large and Midcap Funds Invest Online
C. Mid and SmallCap Funds Invest Online
D. Small and MicroCap Funds Invest Online
E. Sector Funds Invest Online
F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver
G. Gold Mutual Funds Invest Online
H. International funds Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. FT India Feeder Franklin US Opportunities 4. ICICI Prudential US Bluechip Equity 5. Motilal Oswal MOSt Shares NASDAQ-100 ETF      |
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