Protect downside risk with dividend yield funds as they fall less

Dividend yield funds manage to protect downside risk because they invest in cash-rich companies

The equity market is expected to be more volatile in 2018 than in the previous year. In such an environment, investors should put a portion of their equity portfolio in value-oriented funds. Dividend yield funds are one such category, which have shown the ability to offer downside protection in all the declining markets of the past, such as those of 2008, 2011 and 2013.   

Surging crude price has emerged as a key risk that could worsen India's fiscal deficit, current account deficit, and inflation numbers. On the domestic front, several state elections followed by the general elections of 2019