BNP Paribas Dividend Yield Fund
The investment objective of the scheme is to generate long term capital growth from an actively managed portfolio of equity and equity related securities, primarily being high dividend yield stocks. High dividend yield stocks are defined as stocks of companies that have a dividend yield in
excess of 0.5 %, at the time of investment..
Why Dividend Yield Stocks
● Relatively more stable business models with a history of consistent profitability, and a dividend payment track record
● Companies pay dividends after attaining a sustainable level of growth
● Need to pay dividends tends to make the management more accountable to shareholders and less prone to taking unwanted risks
● In case of a market crash, the share price of these companies tend to fall less in comparison to growth stocks. Hence low-risk defensive stocks.