BIRLA SUNLIFE DIVIDED YIELD PLUS

BIRLA SUNLIFE DIVIDEND YIELD PLUS:

A company that shares a good portion of its profit is a good investment, more so if its share price is underrated. You gain in two ways: You not only earn from tax-free dividends, but also from the appreciation in your capital as the price of the stock rises.
How do you tap the opportunity? Through Birla Sun Life Dividend Yield Plus (BSL Dividend Yield Plus), which invests in companies fulfilling both criteria. In fact, had you put money into this plan when it was launched, you would have earned 188% Returns From Dividends Alone – That Too Tax-free.

2 Reasons Why You Can Get More Bang For Your Buck
High dividends, higher profits: The ability to declare dividends - that is, share profits – normally shows a strong company. And BSL Dividend Yield Plus invests only in companies with high dividend yield, that is, with high profitability.
Increased value of holdings: You can get more bang for your buck because shares of these companies (with high dividend yields) often trade at prices lower than their potential. When the price rises, so does the value of your holding.
It’s like buying something really costly at a discount!

INVESTMENT STRATEGY:

The scheme aims to generate returns by investing in high dividend-paying companies. Historically, stocks of high dividend yielding companies provide a high degree of protection during falling equity markets. Along with this protection, there is a good possibility of stock prices appreciating, should the equity markets revive. When a high dividend yield investment is made in conjunction with other parameters like low price to book value ratio (price-to-book) and low market capitalization to sales ratio (market cap-to-sales), the possibility of upward re-rating of the stock increases. 
The scheme would therefore aim to build a portfolio that provides a combination of high dividend yield, substantial capital protection and a strong possibility of capital gains. Investing in stocks with high dividend yields is traditionally a "Defensive Investment Strategy'. 
Using this approach, the scheme targets to achieve returns higher than what would otherwise be available in interest bearing securities (Bonds, FDs, CDs, Debentures etc.), but without taking undue exposure to the vagaries of stock markets. 
Historically, the share prices of companies having high dividend yield are less volatile than growth stocks. It is the belief of the Fund Manager that the companies, which have a track record of dividend payment, are perceived as 'Shareholder Friendly'. High Dividend payouts often signal that there is enough cash generation in the business. Quite often, a high dividend yield in these companies indicates that the stock is currently underpriced inspite of hidger cash generating ability of the issuer. A careful selection of these stocks could therefore unlock the potential growth, which should eventually reflect in share prices.