Zerodha launches silver ETF

New Delhi: Stock brokerage firm Zerodha's 'Zerodha Fund House' has launched a silver ETF scheme. 

 

silver ETF

Is silver ETF safe

It has been informed that this fund will work according to the price of silver in the domestic market.

Applications can be made for this scheme till the 18th. The minimum application limit has been set at Rs 1,000.

It has been informed that silver has the potential to play an important role in investment and modern industry, and this ETF will provide a way to utilize its preciousness.

Is it suitable to invest in dividend funds?

An analysis of the benefits and limitations of dividend funds, which are one of the types of equity funds.

There are many types of funds when it comes to mutual fund investment. Each type of fund has its own unique features, advantages and disadvantages. Therefore, investors need to choose the right funds for themselves.

In that regard, it is good to know the nature and advantages and disadvantages of dividend funds. Let's look at these types of funds, which are considered suitable for investors who expect consistent income and do not like market fluctuations.

Dividend Yield

In mutual fund schemes, funds that invest mainly in dividend-paying stocks are referred to as dividend. Companies distribute a portion of their profits to shareholders as dividends. The ratio of the share price to the annual dividend per share is considered dividend yield.

Dividend funds invest in stocks of companies that pay dividends. According to the Securities and Exchange Board of India (SEBI), these types of funds should invest 65 percent in dividend stocks. The rest can be in other stocks, debt investments, etc.

By investing in dividend stocks, these types of funds can provide consistent income. Although this income is not stable, it is in line with the monthly dividend yield. These are suitable for those who expect consistent income from investment.

Generally, since dividend stocks are considered to have a strong foundation, they can be considered to be less affected by market fluctuations than equity funds with growth potential. These are suitable for new investors who want to invest in funds.

Disadvantages

Furthermore, dividend funds can also help in diversification strategies. They help reduce risk. At the same time, the disadvantages of these should also be kept in mind.

Dividend stocks, although generally strong, are considered to have less growth potential. Also, while equity stocks may provide higher returns when the market is on the rise, that is not possible in dividend funds.

Therefore, these are suitable for investors who want low risk. The taxation aspect should also be kept in mind. The taxation system applicable to equity stocks also applies to them.

However, since they have strong fundamentals, they can provide good returns during the re-interest rate cycle without being affected much by volatility. Investors can consider these funds according to their financial goals, risk profile and investment portfolio.