MUMBAI: Investors looking for equity schemes with lower volatility and a more tax-efficient way to receive payouts by companies could consider dividend yield schemes. This category of funds invests in companies which pay higher dividends that have been in demand among investors of late with interest rates near record lows. Dividend yield schemes must not be confused with the dividend option available for fund categories.
Aditya Birla Sun Life, UTI and ICICI Prudential and HDFC are among the asset managers that offer dividend yield funds. The new fund offer of Tata Mutual Dividend Yield is currently open for subscription.