UTI Dividend Yield Fund (UDYF) is best suited for investors who prefer consistency in returns with a low downside. You may add this fund to your equity portfolio as a diversifier within the asset class. You can create wealth with its conservative investment approach in high dividend yield stocks. It has successfully passed through both the upturn and downturn and has emerged as an impressive performer.

Performance UDYF has performed well across market cycles, during the bull run of 2007 as well as the bear phase of 2008. The impressive performance of 70 per cent in 2007 put it not only ahead of the Nifty, which managed 53 per cent, but also the multi-cap category average of 59.69 per cent. During the market downturn of 2008, when the Nifty fell 52 per cent and the average diversified equity funds around 56 per cent, UDYF fell only 44 per cent.

The fund's performance on 3-year and 5-year bases has been impressive compared to its peers—delivering 4.59 per cent and 10.52 per cent, respectively, against the 2.63 per cent and 5.37 per cent, respectively, by its peers.

Portfolio According to the mandate, UDYF needs to invest at least 65 per cent of its portfolio in equity shares with a high dividend yield and the rest in growth and other instruments.

"We invest in the stocks that have higher dividend yield than the Nifty," says Swati Kulkarni, fund manager, UTI MF. The strategy of being a large-cap-oriented scheme that invests across sectors and market capitalisation has worked in its favour. The February portfolio shows 52 stocks, of which 50 per cent is accounted for by the banking, the petroleum and the software sectors. Kulkarni believes these sectors have the highest dividend yield stocks.

Its performance across market cycles and sound fund management makes UDYF a must-have in your portfolio. You may invest through the SIP route to build your long-term portfolio.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

1. ICICI Prudential Tax Plan Invest Online
2. HDFC TaxSaver Invest Online
3. DSP BlackRock Tax Saver Fund Invest Online
4. Reliance Tax Saver (ELSS) Fund Invest Online
5. Birla Sun Life Tax Relief '96 Invest Online
6. IDFC Tax Advantage (ELSS) Fund Invest Online
7. SBI Magnum Tax Gain Scheme 1993 Invest Online
8. Sundaram Tax Saver Invest Online
9. Edelweiss ELSS Invest Online