Business & Investment

Investors looking for an equity scheme to receive payments in a less volatile and more tax effective way

Investor Looking for an equity scheme with low volatility and a more tax-effective way to receive payments by a company can be considered a dividend yield scheme. This category invests in companies that are in demand among recent investors and pay higher dividends with interest rates close to record lows. Dividend yield schemes should not be confused with the dividend options available in the fund category.

Aditya Birla Sun Life, UTI, ICICI Prudential and HDFC are one of the asset management companies that offer dividend yield funds.New Fund Offer for Tata Mutual Dividend Yield Open for Subscription

Market recovery is expected to be widespread, and fund managers believe that dividend yield companies trading in attractive valuations may launch faster.

“Dividend yield funds are a blend of value and stable growth companies. With the return of value in global calculations, we believe that dividend yield strategies will take advantage of investment opportunities in that segment,” he said. I will. Rafur Singh, Chief Investment Officer, Tata Mutual Fund.. He said the dividend yield system provides downside protection during these uncertain times.

The Nifty Dividend Opportunities 50 Total Returns Index (TRI) outperforms the Nifty 50 TRI by 1.98% annually over 14 years. The Nifty 50 TRI returned an annual rate of 9.47% from October 2007 (just before the global financial crisis in September 2008) to March 31, 2021, while the Nifty Dividend Opportunities 50 TRI provided 11.45%. .. Over the last decade, the Nifty Dividend Opportunities 50 Price Return Index (PRI) has returned 106.93%, while the Nifty Dividend Opportunities 50 TRI, which also takes dividends into account, has returned 170.33%.

Financial planners recommend this category to conservative investors with a low-risk appetite

“Conservative investors who need low volatility and regular income should choose a systematic withdrawal plan that reduces their tax obligations,” says Rupesh. Vanthli, Head (distribution), GEPL Capital..

Mr Bansari said investors could buy growth options for such equity trust schemes.

After dividend income from stocks is taxed in the hands of investors, people with high tax rates will pay a 30% income tax on the dividends they receive. On the other hand, if you invest in an equity mutual fund such as a dividend yield system and withdraw after a year, you will only be paid 10% capital gains tax.

Investors looking for an equity scheme to receive payments in a less volatile and more tax effective way

https://economictimes.indiatimes.com/markets/stocks/news/investors-looking-for-equity-schemes-with-lower-volatility-and-more-tax-efficient-way-to-receive-pay-outs/articleshow/82392859.cms Investors looking for an equity scheme to receive payments in a less volatile and more tax effective way

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