We all incur expenses in our daily lives ranging from money to buy necessary household items to luxury items. These types of expenses may be fulfilled by our salary. However, we also have many financial responsibilities in life ranging form educating our children, marrying off daughters, paying for medical treatment, supporting one's spouse and preparing for our retirement years which cannot be met by simply salary. Investment is the key to building up a saving that will help us meet all kinds of financial responsibilities. Investments in mutual funds have become popular due to many benefits it offers. Some advantages that attract investors are listed below:
- Diversification
- Flexibility
- Professional wealth management
- Liquidity
A mutual fund happens to own an entire portfolio of securities ranging form stocks, bonds to a combination of both. Investors in MF schemes own a share of these securities. Now any income or interests paid by these securities have to be passed through the shareholders by Government decree. These are usually paid in form of dividends. What are MF dividends? The investors can earn in two ways - either through increase in value of shares of fund or through distribution among shareholders. Distributions can be of two types - capital gains or dividends. Investors may choose to take dividends in form of cheques, direct deposit in their bank account or they can reinvest the dividends into the fund. Many chose to reinvest in compounding shares of mutual funds to increase their dividend earnings.
Sundaram schemes are extremely lucrative investment options since they are really performing well. Sundaram has built up a great reputation for consistent returns and transparency, which attracts more investors. Here are some Sundaram mutual funds that have declared dividends.
- Sundaram BNP Paribas S.M.I.L.E Fund - declared a dividend of 30% and record date of dividend is March 26, 2010.
- Sundaram BNP Paribas Select Focus - declared a dividend of 20% and record date of dividend is 26th March 2010.
- Sundaram Select Small Cap Fund - declared quantum dividend of 10% and record date in November 19, 2010.
