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Baroda BNP Paribas MF’s new Dividend Yield Fund will use consistent dividend payout track record as an important filter to identify high cash flow generating stocks across a broad range of sectors.
It will not necessarily invest in high dividend paying companies – but the focus will be on growth oriented stocks with strong cash flow generation.
The fund will be benchmarked against the broad market Nifty 500 index.
Shiv will adopt a wait-and-watch stance on the high dividend payout group of IT services stocks – to discern tangible evidence of growth momentum, before making material commitments.
Shiv is cautious on global cyclicals but very constructive on domestic themes –particularly discretionary as well as staples consumption, pharma, capital goods and industrials.
Good logic behind this Dividend Yield Fund. Strong cash flow is the requirement not regular dividend paying stocks. Fund will have lower volatility.