Introduction
Are you searching for mutual funds with upcoming dividends? Many investors have started preferring dividend-yield mutual funds because of their balance between income and capital appreciation. This can article help you understand the meaning, features, and benefits of dividend mutual funds and updates you on upcoming dividends in mutual funds.
What is a dividend mutual fund?
Dividend mutual funds invest most of their portfolio in companies that pay dividends consistently. A company can pay dividends only when it is making profits. So, the stocks these funds pick belong to profit-generating companies with a proven performance record.
The objective of dividend mutual funds is to offer a steady source of income through regular dividend payouts. They also offer a potential for capital appreciation through stock price increases.
The stocks selected for dividend mutual funds aren’t based only on high dividends but a high dividend yield. So, a company with a high dividend payout but a high market price will have a low dividend yield. In such a case, the fund may not choose to invest in it. Fund managers usually evaluate the dividend yield, growth prospects, and other parameters before picking a stock.
Features of dividend-yield mutual funds
-
Income source
The main reason investors choose this type of fund is the dividend. You can earn consistent investment returns by investing in a dividend-yield mutual fund. However, this is possible only when the mutual fund house books profits on its holdings.
- Lower risk
Organisations with a strong reputation and steady performance pay dividends regularly. These include major corporations with significant market capitalisations. As the stocks of such established companies are not affected by short-term market volatility, the risk factor is reduced.
Upcoming dividends in mutual fund
The following mutual funds have upcoming dividends on the below-mentioned record dates:
|
Scheme name
|
Category |
Record date |
Dividend (%) |
| AXIS Equity Hybrid Fund - Regular (IDCW-M) |
Hybrid - Equity Oriented |
26-Aug-24 |
1 |
| AXIS Arbitrage Fund - Regular (IDCW-M) |
Arbitrage Funds |
26-Aug-24 |
0.5 |
| AXIS Arbitrage Fund - Direct (IDCW-M) |
Arbitrage Funds |
26-Aug-24 |
0.5 |
| AXIS Multi Asset Allocation Fund - Direct (IDCW-M) |
Hybrid - Equity Oriented |
26-Aug-24 |
1.5 |
| AXIS Equity Hybrid Fund - Direct (IDCW-M) |
Hybrid - Equity Oriented |
26-Aug-24 |
1 |
| HSBC Balanced Advantage Fund - Regular (IDCW) |
Hybrid - Equity Oriented |
26-Aug-24 |
1.3 |
| AXIS Multi Asset Allocation Fund - Regular (IDCW-M) |
Hybrid - Equity Oriented |
26-Aug-24 |
1.5 |
| AXIS Equity Saver Fund - Regular (IDCW-M) |
Hybrid - Balanced |
26-Aug-24 |
0.9 |
| HSBC Midcap Fund (IDCW) |
Equity - Diversified |
26-Aug-24 |
75 |
| HSBC Medium Duration Fund - Regular (IDCW) |
Income Funds |
26-Aug-24 |
0.7 |
| HSBC Aggressive Hybrid Fund - Regular (IDCW) |
Hybrid - Equity Oriented |
26-Aug-24 |
2.4 |
| HSBC Midcap Fund - Direct (IDCW) |
Equity - Diversified |
26-Aug-24 |
75 |
| HSBC Business Cycles Fund - Direct (IDCW) |
Equity - Diversified |
26-Aug-24 |
25 |
| HSBC Aggressive Hybrid Fund - Direct (IDCW) |
Hybrid - Equity Oriented |
26-Aug-24 |
2.4 |
| HSBC Medium Duration Fund - Direct (IDCW) |
Income Funds |
26-Aug-24 |
0.75 |
| HSBC Balanced Advantage Fund - Direct (IDCW) |
Hybrid - Equity Oriented |
26-Aug-24 |
1.5 |
| HSBC Credit Risk Fund - Direct (IDCW-M) |
Income Funds |
26-Aug-24 |
0.8 |
| HSBC Business Cycles Fund - Regular (IDCW) |
Equity - Diversified |
26-Aug-24 |
25 |
| AXIS Equity Saver Fund - Direct (IDCW-M) |
Hybrid - Balanced |
26-Aug-24 |
0.9 |
| HSBC Credit Risk Fund (IDCW-M) |
Income Funds |
26-Aug-24 |
0.75 |
Why should you invest in dividend mutual funds?
Dividend mutual funds offer the following benefits, making them an attractive investment option.
-
Consistent income: Dividend payments create a steady income source, which can add to your regular income. You can also use it to compound your returns over time by reinvesting.
- Potential capital growth: Dividend mutual funds provide significant capital growth in the long term. This is because of dividend reinvestment and the growth potential of the selected companies through which they increase their dividend payouts.
- Lower volatility: Generally, the volatility of dividend stocks is lower than the broader market. Consequently, investors who want to build a strong portfolio should invest in them.
- Diversification: Dividend mutual funds invest in a variety of companies across sectors. When you invest in them, your portfolio is diversified instantly, and your risk spreads out. Your portfolio is not affected adversely by a single company’s performance.
Summing up
Dividend mutual funds are a good option if you want a consistent income through dividends. The mutual fund passes the company’s dividends to you. Learning about the upcoming dividends in mutual funds can help you invest in them.
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