Dividend yield funds perform better than Sensex, Nifty

MUMBAI: As the market brings in fall in share prices, returns and sentiments, there are funds that haven't much borne the brunt of the massive dip. These are dividend yield funds.

At a time when the Sensex has fallen to more than 27 per cent in one year, these funds have fallen not more than 21 per cent on an average.

Says Manish Bhandari, fund manager, ING Dividend Yield Fund, "The foremost strategy that has worked for dividend yield funds is selecting stock and constructing portfolio of stocks having dividend yield of more than Nifty, and being true to the mandate of investing in dividend yield stocks only."

Of all the six funds having exposure to dividend yield stocks, ING Dividend Yield Fund has emerged as the less-destroyed fund in terms of returns, with only 15 per cent fall in its returns for one-year period.

Adds Bhandari of ING Dividend Yield Fund, "Our value-investing approach in stock selection has helped us to deliver superior returns, which have beaten the index by more than 10% in one-year time frame. We wouldn't invest in momentum or high P/E stocks."

(Source:Economic times)