What are dividend yield funds?
A thread ЁЯз╡ЁЯСЗ
Bonus: Comments on HDFC Dividend Yield Fund (NFO)
an important advantage of investing in such funds for large investors is tax arbitrage.
- Scheme will invest a minimum of 65% of corpus in high dividend yield stocks.
- Preference will be given to stocks with a consistent history of paying dividends.
- Stock having higher DY than the Nifty 50 index will be preferred. (Most PSU utility and energy companies qualify).
- Investing in low capital intensive business (Most IT companies).
- Ability to increase dividend payouts.
- Dividend yield at 1x - 2x of 10-year G-sec yield.
- It will be sector and market cap agnostic.
My take on this NFO:
- Most of the stocks in portfolio will be PSU utility & energy cos that have not performed well in terms of share price growth. In some cases, The dividend yield was fully offset by the decline in share price thereby yielding zero or negative returns.
- Valuation could be a cause of concern while investing in FMCG companies even when they have stable dividend payouts. Time correction in such companies may result in below-par returns for the scheme.
- IT companies have displayed stability in terms of dividends along with decent stock price growth and are trading at reasonable valuations. A higher weightage to these companies may result in good performance of the scheme.
- Median expense ratio of this category of funds is around 1.5%. This coupled with lower share price growth stocks could lead to below-par returns.
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Last week the @ECB extended its current asset purchase program, now totalling тВм1.8 tn. Several EU states can borrow at negative interest rates.
10 years ago, the eurozone almost collapsed, a result of a misconstructed currency that was meant to fail from the outset.
A threadЁЯСЗ
1/Before the introduction of the euro, fluctuating exchange rates were seen as threat for economic integration & embarrassment for those who were inflating their currencies faster than others.
The European Monetary System, set up in 1979, was an attempt to stabilise fx rates.
2/The EMS was doomed to fail as members applied different monetary policies while trying to keep their fx rates in a pre-defined corridor.
The German Bundesbank refused to devalue the Mark when other centr. banks inflated their currencies - strengthening the Mark by comparison.
3/Traditionally, Southern EU countries have been more prone to inflation & high debt levels due to a large public sector, strong labour unions & generous pension systems.
Northern countries like Germany & the Netherlands typically had more prudent monetary & fiscal policies.
4/To get rid of the stubbornly conservative Bundesbank & monetise public deficits more easily, Southern countries spearheaded by France pushed for a single currency and used GermanyтАЩs desire for reunification in 1989 to make it give up the D-Mark.
10 years ago, the eurozone almost collapsed, a result of a misconstructed currency that was meant to fail from the outset.
A threadЁЯСЗ
1/Before the introduction of the euro, fluctuating exchange rates were seen as threat for economic integration & embarrassment for those who were inflating their currencies faster than others.
The European Monetary System, set up in 1979, was an attempt to stabilise fx rates.
2/The EMS was doomed to fail as members applied different monetary policies while trying to keep their fx rates in a pre-defined corridor.
The German Bundesbank refused to devalue the Mark when other centr. banks inflated their currencies - strengthening the Mark by comparison.
3/Traditionally, Southern EU countries have been more prone to inflation & high debt levels due to a large public sector, strong labour unions & generous pension systems.
Northern countries like Germany & the Netherlands typically had more prudent monetary & fiscal policies.
4/To get rid of the stubbornly conservative Bundesbank & monetise public deficits more easily, Southern countries spearheaded by France pushed for a single currency and used GermanyтАЩs desire for reunification in 1989 to make it give up the D-Mark.
Saturday marks the 30th anniversary of German reunification.
— HODLdax (@HODLdax) September 30, 2020
Did you that Germany had to sacrifice its national currency for it?
Let\u2019s look back at the fateful decisions leading to the Euro, a secretive project driven by much political interest and little economic reason.\U0001f447 pic.twitter.com/XcWgBOr29O
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THEY DO READ THEM, YOU JUDGY, RACOON-PICKED TRASH BIN
If you come for Bookstagram, i will fight you.
In appreciation, here are some of my favourite bookstagrams of my books: (photos by lit_nerd37, mybookacademy, bookswrotemystory, and scorpio_books)
Beautifully read: why bookselfies are all over Instagram https://t.co/pBQA3JY0xm
— Guardian Books (@GuardianBooks) October 30, 2018
THEY DO READ THEM, YOU JUDGY, RACOON-PICKED TRASH BIN
If you come for Bookstagram, i will fight you.
In appreciation, here are some of my favourite bookstagrams of my books: (photos by lit_nerd37, mybookacademy, bookswrotemystory, and scorpio_books)
Stan LeeтАЩs fictional superheroes lived in the real New York. HereтАЩs where they lived, and why. https://t.co/oV1IGGN8R6
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Tying MarvelтАЩs stable of pulp-fiction heroes to a real place тАФ New York тАФ served a counterbalance to the sometimes gravity-challenged action and the improbability of the stories. That was just what Stan Lee wanted. https://t.co/rDosqzpP8i
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Stan Lee, who died Monday at 95, was born in Manhattan and graduated from DeWitt Clinton High School in the Bronx. His pulp-fiction heroes have come to define much of popular culture in the early 21st century.
Tying MarvelтАЩs stable of pulp-fiction heroes to a real place тАФ New York тАФ served a counterbalance to the sometimes gravity-challenged action and the improbability of the stories. That was just what Stan Lee wanted. https://t.co/rDosqzpP8i
The New York universe hooked readers. And the artists drew what they were familiar with, which made the Marvel universe authentic-looking, down to the water towers atop many of the buildings. https://t.co/rDosqzpP8i
The Avengers Mansion was a Beaux-Arts palace. Fans know it as 890 Fifth Avenue. The Frick Collection, which now occupies the place, uses the address of the front door: 1 East 70th Street.
