BC BANK
Saved by @Alex1Powell

What are dividend yield funds?

A thread 🧵👇

Bonus: Comments on HDFC Dividend Yield Fund (NFO)

 1/ NFO: New Fund Offer is like an IPO of Mutual Fund Scheme. The scheme issues units to its subscribers at Face Value which is usually Rs. 10 per unit.
2/ The dividend yield is a financial metric that shows the amount paid by a company to its shareholders as a percentage of its stock price. Eg: A dividend of Rs. 10 on a stock of Rs. 200 would indicate a dividend yield of 5%.
3/ A dividend yield fund is a scheme that invests predominantly in companies having a track record of high dividend payouts along with occasional buybacks in order to return money to its shareholders.
4/ The fund bets on companies with stable cash flows along with predictable earnings. These are mature companies growing at a normal pace with lesser opportunities to reinvest their profits at a higher rate of return and hence chose to pay hefty dividends or consider buybacks.
5/ Companies in this category are mostly large-cap IT, FMCG, Energy, Utilities, etc. The focus of the scheme is to ensure the stability of returns over high growth on capital.

an important advantage of investing in such funds for large investors is tax arbitrage.
6/ Dividend in the hands of investors is taxed at the slab rates. This could be a cause of concern for large investors in high tax bracket. However, when they invest in mutual funds, there is no tax on dividends to the Mutual Fund house
7/ and the tax is incurred by investors only when they sell units in profit. These gains are taxed at 10% in the case of LTCG (holding period over 1 year) and 15% in the case of STCG (holding period of 1 year or less). This provides additional benefit on post-tax basis.
8/ The benchmark for such schemes is NIFTY Dividend Opportunities 50 Index. You can check the latest constituents here: https://t.co/AkenglKiFt
9/ Following is the weightage of stocks in NIFTY Dividend Opportunities 50 Index as of 30th October 2020:
10/ HDFC Dividend Yield Fund is a New Fund Offer in this particular category. I have tried to summarize the details put forth by various communications received from AMC with respect to these schemes:

- Scheme will invest a minimum of 65% of corpus in high dividend yield stocks.
11/

- Preference will be given to stocks with a consistent history of paying dividends.

- Stock having higher DY than the Nifty 50 index will be preferred. (Most PSU utility and energy companies qualify).

- Investing in low capital intensive business (Most IT companies).
12/

- Ability to increase dividend payouts.

- Dividend yield at 1x - 2x of 10-year G-sec yield.

- It will be sector and market cap agnostic.
13/

My take on this NFO:

- Most of the stocks in portfolio will be PSU utility & energy cos that have not performed well in terms of share price growth. In some cases, The dividend yield was fully offset by the decline in share price thereby yielding zero or negative returns.
14/

- Valuation could be a cause of concern while investing in FMCG companies even when they have stable dividend payouts. Time correction in such companies may result in below-par returns for the scheme.
15/

- IT companies have displayed stability in terms of dividends along with decent stock price growth and are trading at reasonable valuations. A higher weightage to these companies may result in good performance of the scheme.
16/

- Median expense ratio of this category of funds is around 1.5%. This coupled with lower share price growth stocks could lead to below-par returns.
17/

- The fund should have lower beta and volatility as compared to other broader indices like Nifty 50 due to its constituents. The fund manager can further reduce the volatility by higher allocation to low beta stocks. (We will have to wait and watch).
18/

- The dividend tax arbitrage won't make much sense in the case of investors in lower tax slabs.
19/

Conclusion: Investors looking for low volatility and stable returns can take a look at this fund. However, looking at past performance of this category, it can be seen that these funds have underperformed the funds in other equity-oriented categories (Eg: Multi cap).

End.

More from Bank

Risk Manager(Banks,Asset Management,Insurance)
Risk Manager(Banks,Ass...
@SAH16928046
What are the different ways in which banks can reduce and manage different types of risk?
@GARP_Risk @actuarynews @SOActuaries @RiskDotNet

By understanding what risk is in terms of its purported definition?
If you get the definition wrong, you won't understand the technical expression in either theory or practice.
So, get that right first!

#Risk is a two-sided phenomenon, like a coin!

2. The one side of the coin presents an Opportunity!
2.The another side of the coin presents a Threat!

On which side would you like to do betting?

The same holds true for a financial institution such as a bank.

The interpretation of #risk depends on your insights, your hunch, your gut feelings, your emotions, and last but the not least, your cognitive biases.

To understand Risk Management as a subject, you need to go deeper into the understating of the Psychology of Risk Perception.
BANK
Jeet Tekchandani
Jeet Tekchandani
@tjitendra
1) Single most important principle in the field of interpersonal relations is Empathic Communication, which means "Seek first to understand, then to be understood"

#Leadership #Communication #empathy

2) There are four forms of communication: Reading, Writing, Speaking and Listening. We spend most of our waking hours communicating. The ability to do it well is absolutely critical for human effectiveness

3) We spend years learning how to read, write and speak but how about listening? What education or training have we had that enables us to listen so that we can really deeply understand another human being.

4)  We typically seek first to be understood. Most people do not listen with the intent to understand; they listen with the intent to reply. They are either speaking or preparing to speak.

5) We are usually listening at 4 levels:
Ignoring - not listening at all
Pretending - "Yeah. Uh-huh. Right"
Selective Listening - hearing only selective parts
Attentive listening - paying attention and focusing on words
But we should practice the 5th level : Empathic Listening
BANK
Advertisement
Gaurav Sharma
Gaurav Sharma
@Gaurav1105
1/n: In the new decade, the fin-services sector will look beyond the current open banking ‘phase’ and towards a future of fintech enabled marketplaces and complete financial automation, where the traditional banking model is turned on its head and requires a dramatic rethink,

2/n: emphasizing:
1) Experience over Products;
2) Data over Assets;
3) Partnering over the build or buy;
4) Shared access over ownership.

3/n: FinTechs are now increasingly global, and threatening traditional banks by ushering in product-stack changes- from ‘un-bundling to re-bundling’, from ‘mono-line to multi-line’.

4/n: Incumbent Banks will recognize the value of the financial-cloud and speed up their digital transformation efforts to meet customer expectations derived from fintechs with new operating and business models.

5/n: In the medium term, transactional banking (i.e. manufacture white-label versions of specific products and services) will gain traction. Distributed Ledger, API banking, and AI will become critical building blocks for both banks and financial services providers —
BANK
Maxima Official
Maxima Official
@official_maxima
★ FEDERAL BANK HORMIS MEMORIAL FOUNDATION SCHOLARSHIP ★

◆ Last Date :- 31 January 2021

◆ Scholarship Amount :- Upto Rs.1Lakh per year.

◆Scholarships Details :-
1) Selected students will be reimbursed 100% of tuition fees and other fees paid as per fee

1/8


structure of the college, subject to a maximum of Rs.1Lakh per year.

2) Students are eligible for
one Personal Computer / Laptop (maximum Rs 40,000/-will be reimbursed) during their course of study (within the overall limit of Rs.1.00 Lakh per year).

2/8

◆Eligibility Criteria:- 
1) Only Students from the Maharashtra, Kerala,Gujrat, Tamil Nadu State are eligible for scholarship.
2) Annual family Income of the students applying for the scholarship should be less than Rs.3 Lakhs

3/8

3) Annual Income criteria is NOT applicable for wards of martyred Armed Forces Personnel
4) Students who admitted in first year of MBBS,Bsc nursing, engineering, MBA, Bsc AGRICULTURE,
BSC cooperation and banking with agricultural science are eligible for scholarship

4/8

◆ Document Required:-
1) Copy of Admission Letter
2) Copy of Bonafide Certificate from the college
3) Copy of course fee structure
4) Copy of Mark sheets of qualifying Examination (If originals are already submitted to the
college and not available for verification,

5/8
BANK
HODLdax
HODLdax
@HODLdax
Last week the @ECB extended its current asset purchase program, now totalling €1.8 tn. Several EU states can borrow at negative interest rates.

10 years ago, the eurozone almost collapsed, a result of a misconstructed currency that was meant to fail from the outset.

A thread👇


1/Before the introduction of the euro, fluctuating exchange rates were seen as threat for economic integration & embarrassment for those who were inflating their currencies faster than others.

The European Monetary System, set up in 1979, was an attempt to stabilise fx rates.

2/The EMS was doomed to fail as members applied different monetary policies while trying to keep their fx rates in a pre-defined corridor.

The German Bundesbank refused to devalue the Mark when other centr. banks inflated their currencies - strengthening the Mark by comparison.


3/Traditionally, Southern EU countries have been more prone to inflation & high debt levels due to a large public sector, strong labour unions & generous pension systems.

Northern countries like Germany & the Netherlands typically had more prudent monetary & fiscal policies.

4/To get rid of the stubbornly conservative Bundesbank & monetise public deficits more easily, Southern countries spearheaded by France pushed for a single currency and used Germany’s desire for reunification in 1989 to make it give up the D-Mark.
BANK

You May Also Like

Amit Schandillia
Amit Schandillia
@Schandillia
[THREAD: HISTORY OF THE HINDU TEMPLE]
1/102
Four hours south of Aswan in Lower Nubia, right by the Nile, is a region dotted with temple complexes built more than 3,000 years ago. Some like the temples of Amada, Derr, and Beit el-Wali go as far back as 1500 BC.


2/102
A little further south, not far from the border with Sudan, is another complex dedicated to Ramses II, Hathor, and Nefertari in the village of Ipsambul, better known locally as Abu Sunbul and internationally as Abu Simbel. These go back to the 13th century BC.


3/102
Djeser-Djeseru, also known as the mortuary temple of Hatshepsut in Upper Egypt also dates to 1400 BC. Over 500 years older is the nearby Mentuhotep II, also a mortuary temple. Both were dedicated to the cult of Amun Ra, besides their respective pharaohs.


4/102
Far older is the Ġgantija complex of Malta. Going as far back as 3600 BC, this one comprises of two temples entirely made of stone and enclosed in a stone wall. From the figures therein, it's understood to be a site of some kind of a fertility cult worship.


5/102
Dating from the same period are the limestone megaliths of Ħaġar Qim and Mnajdra, both said to have once hosted ritualistic sacrifices as part of the same fertility cult worship as found in the Ġgantija complex. Malta has some of the oldest temple complexes in Europe.
RELIGION
Chris Herd
Chris Herd
@chris_herd
The 2020s will be known as the Remote Work decade

A few predictions of what is likely to emerge

[ a thread ] 💻🏠🌍

🏦Third Space: Office and Working from Home will be joined by somewhere close by that a number of people will use

Supermarkets or local bank branches should emerge as a convenient ubiquitous location option – if they are smart

⏰Asynchronous Work: Offices are instantaneous gratification distraction factories where synchronous work makes it impossible to get stuff done

Tools that enable asynchronous work are the most important thing globally remote teams need. A lot of startups will try to tackle this

⚽️Hobbie Renaissance: Remote working will lead to a rise in people participating in hobbies and activities which link them to people in their local community

This will lead to deeper, more meaningful relationships which overcome societal issues of loneliness and issolation

🚜Rural Living: World-class people will move to smaller cities, have a lower cost of living & higher quality of life

These regions must innovate quickly to attract that wealth. Better schools, faster internet connections are a must
REMOTE WORK
Advertisement
Vibhu Vashisth
Vibhu Vashisth
@VIBHU_Tweet
IT WAS RISHI KANADA WHO GAVE THE ATOMIC THEORY & TALKED ABOUT THE GRAVITY OF EARTH, 2600 YEARS BEFORE AN APPLE FELL IN FRONT OF NEWTON'S EYES:

Scientists of the modern world credit an English scientist John Dalton (1766 CE -1844 CE) for the Atomic Theory.


And this is because, most of us are not even aware of an ancient Indian Sage named Kanada, who was the first to formulate the theory of atoms, almost 2600 yrs before Dalton and talk about earth's gravity.


Rishi Kanada was born around 600 BCE in Dwarka, Gujarat and he was the son of a philosopher named Ulka. He was fascinated with the minute detailing of the things right from his childhood. Once, when he was very young, he accompanied his father on a journey to Prayaga.


He saw plentiful grains scattered along the path leading to the shore of river Ganga. It's a tradition in Hindu families to scatter the grains for the ants and birds to feed on them. Suddenly, an ant caught his attention, who was feeding on a rice grain.


He was mesmerised by this very fact that how a small grain of rice becomes food for the ant but to satisfy the hunger of a person so many grains are needed together. This incidence made him realize the importance of a single grain of rice.
ALL
Vibhor Varshney
Vibhor Varshney
@nakulvibhor
On the occasion of youtube 20k and Twitter 70k members

A small tribute/gift to members

Screeners

technical screeners - intraday and positional both

before proceeding - i have helped you , can i ask you so that it can help someone else too

thank you

positional one

run - find #stock - draw chart - find levels

1- Stocks closing daily 2% up from 5 days
https://t.co/gTZrYY3Nht

2- Weekly breakout
https://t.co/1f4ahEolYB

3- Breakouts in short term
https://t.co/BI4h0CdgO2

4- Bullish from last 5

intraday screeners

5- 15 minute Stock Breakouts
https://t.co/9eAo82iuNv

6- Intraday Buying seen in the past 15 minutes
https://t.co/XqAJKhLB5G

7- Stocks trading near day's high on 5 min chart with volume BO intraday
https://t.co/flHmm6QXmo

Thank you
SCREENERS , ALL , NAKULSMIX
AKASH
AKASH
@AKASHBH95801446
THE SCIENCE BEHIND YAJNA

Fire is, of course, one of the greatest discovery of mankind. Our control over the fire dramatically changed the entire human habits; earlier it was used to cook food, protection from animals and to stay warm.


Among the many applications of fire, one is Yajna (यज्ञ, yajña); also called as Havana (हवन) or Agnihotra (अग्निहोत्र).
Yajna is elaborately described in Yajurveda. In Yajurveda, Yajna is the greatest among all works (Karman). One can purify his /her soul by performing Yajna.

In Vedic culture, it is thought that the holy fire is the mediator between Gods and us; when the offerings are made to Yajna with chanting mantras, it directly reaches the Gods, who bless the people with rains, food, health, and good luck.

According to Apastamba Sutra, the definition of Yajna is Vedic sacrifice; an act by which we surrender something for gods e.g. grains (Anna), pulse, milk and milk product (ghee, butter, curd) fruits, plant juice (soma), etc.

As we said; Yajna is the contact medium for gods and

to seek their blessings.

There are many types of Yajna performed by Hindus for e.g.,

1. Rajsuya Yajna
2. Ashwamedha Yajna
3. Chaaturmasya Yajna
4. Vaajpey Yajna
5. Purushmedha Yajna
6. Sarvamedha Yajna
RELIGION