Benefits of investing in mutual funds include diversification to minimize risk of losses, high liquidity, high profits and professional wealth management services.
As a result these are low risk good profit or income generating investment option, particularly for people looking to build up a savings for their retirement years.
Now, there are different types of schemes like equity, debt, gilt, value stocks, growth schemes, open ended schemes, close ended funds etc.
It can therefore turn out to be very confusing for novice investors.
In this article we will discuss the benefits of mutual funds that pay out dividends to its investors.
In such investments, a part of the profits made through investment are distributed among the investors from time to time when the fund declares dividends.
When a scheme declares dividend out of the gains earned the size of the fund amount also decreases and as a result the Net Value Asset or NAV too drops.
Then why should investors opt for dividend paying funds? When dividends are declared a host of new investors are also attracted to the fund.
Moreover, a dividend generated from equity mutual funds happens to be tax free.
There is no dividend distribution tax and long term capital gains too are tax free.
UTI is a trusted organization with many years under its belt.
Many of its schemes have declared dividends.
Here are some funds, where you can invest if you wish to rake in dividends.
As a result these are low risk good profit or income generating investment option, particularly for people looking to build up a savings for their retirement years.
Now, there are different types of schemes like equity, debt, gilt, value stocks, growth schemes, open ended schemes, close ended funds etc.
It can therefore turn out to be very confusing for novice investors.
In this article we will discuss the benefits of mutual funds that pay out dividends to its investors.
In such investments, a part of the profits made through investment are distributed among the investors from time to time when the fund declares dividends.
When a scheme declares dividend out of the gains earned the size of the fund amount also decreases and as a result the Net Value Asset or NAV too drops.
Then why should investors opt for dividend paying funds? When dividends are declared a host of new investors are also attracted to the fund.
Moreover, a dividend generated from equity mutual funds happens to be tax free.
There is no dividend distribution tax and long term capital gains too are tax free.
UTI is a trusted organization with many years under its belt.
Many of its schemes have declared dividends.
Here are some funds, where you can invest if you wish to rake in dividends.
- UTI Pharma and Healthcare Fund - dividend declared at 1.
7 Rs/unit on and record date is 28th October 2010. - UTI Transportation and Logistics Fund (G) - dividend declared at 2.
00 Rs/unit and record date is 6th October 2010. - UTI Mastershare (G) - dividend declared at 3.
00 Rs/unit and record date is 15th November 2010.
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