"Companies that pay high dividends typically have strong cash flows and tend to be more stable," Atul Shinghal, Founder and CEO of Scripbox, says
But limit exposure as they can lag behind growth-oriented peers
The higher dividend yields of these portfolios cushion the fall during market corrections
Restrictive mandate can result in these schemes missing out on good opportunities
Dividend yield funds invest in stocks that pay dividend above a certain cut-off level
Dividend yield funds manage to protect downside risk because they invest in cash-rich companies
The market has been on a sustained uptick and growth stocks are in the spotlight