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A Different Flavour

Though it is relatively a young fund, in its two-and-a-half years of performance record, Birla Dividend Yield Plus' performance has been quite average

As on December 20, 2005, the fund had one-year trailing returns of 33.90, as against category's 50.94 per cent. In the year-to-date returns in 2005, the fund has delivered 28.84 per cent.

It may be mentioned here that Birla Dividend Yield Plus was the first dividend yield fund to be launched. Since then, four more funds pegged on the strategy of investing into high dividend yielding stocks have been launched, while few other are expected to be launched soon.

The fund invests a chunk of its portfolio in mid-and small-caps, though it mitigates its risk by diversifying its portfolio across more stocks.

The fund is also quite diversified across sectors. Energy stocks have always accounted for more than 10 per cent of the portfolio. The share of services sector has gone down in recent times, while sectors like technology and consumer non-durable have witnessed a notable increase. Hero Honda has been the among the favourite stocks of the fund since long. With an exposure of 7.18 per cent, the stock is currently the fund's top equity holding.

The fund has been very generous in distributing dividends. In a short span of two-and a half years of its existence, the fund has declared around 11 dividends.