Are the monthly dividends sustainable in the future?


New Member
Kindly let me know that shall I be receiving my monthly dividends regularly, for I heard that monthly dividends are going to be stopped!


Well-Known Member
MFs have already reduced the amount of dividends on their schemes. This is the case when nothing adverse has happend in the markets. MFs are finding it difficult to generate profits to pay off regular dividends. Something is fishy.
MF industry itself is a big scandal. They donot let public know what is actually happening inside. The growth story is not that attractive. The actual earnings donot support the high valuations. Recently there is great inflow of funds into MFs from public. EPFO also has diverted more than Rs.80000 crores into markets. Where can they invest those funds except in markets. Recent highs is due to these unwarranted funds flow but not because of earnings by corporate. It implies high valuations and let us see how far these funds justify these unwarranted high levels despite poor performance.