If you’re the kind of investor who spends limited time monitoring the ups and downs of the markets, having a mutual fund can be a great alternative. With a single purchase, you can have investments in different securities. This is how mutual funds work. They gather money from individuals and organizations to invest in several assets in various industries around the globe.
Because of this advantage, the Dividend Performers have become a popular mutual fund available in the financial markets nowadays.
In case you haven’t heard about the Dividend Performers, continue reading this article to learn more about this Mutual Fund.
What is Dividend Performers?
For those who don’t have any idea, the Dividend Performers is known as Mutual Fund, which is professionally managed to ensure successful delivery of income and growth. Primarily, its investments focus on U.S stocks to appreciate capital and raise dividends.
As a professionally managed mutual fund, the Dividend Performers have access to fundamental research, which is primarily focused on downside risk analysis. Moreover, another part of the professional management aspect of this mutual fund is the role of experienced traders in the management of the overlay.
Like other mutual funds, the Dividend Performers’ strategy focuses on the utilization of an option overlay strategy to develop the distributions to the shareholders. It’s also aimed at investing in common stocks of U.S. companies that pay dividends.
If you want an in-depth understanding of the Dividend Performers’ Fund, visit https://dividendperformers.com/ for more information.
What is Dividend Performers’ Methodology?
Primarily, investing in Dividend Performers’ Fund will seek to generate 2 – 3% of the gross annual income from dividends and 3 – 4% from the option premium. The Fund’s methodology, for instance, is divided into three categories, such as the following:
- Income Generation
Again, Dividend Performers seeks to provide investors consistent income from dividends as well as the option premiums coming from an option overlay approach.
- Portfolio Construction
It’s another method Dividend Performers is using. It involves the compilation of Dividend Achievers stocks alongside the most influential downside risk scores. Moreover, the portfolio construction methodology consists of an option overlay strategy whereby it utilizes the long put option to hedge any relevant downside risk. Also, an overlay strategy sells an out-of-the-money short put option twice every month.
- Fundamental Analysis & Research
It’s the last but not the least methodology used in Dividend Performers Fund. The research utilizes a “risk-first” approach in choosing stocks to be included in the portfolio. The purpose of which is to determine mispriced stocks and to score the risk of the capital against potential return.
Quick Review of Dividend Options
As mentioned, Dividend Performers is a professionally managed fund that invests in options. If you’re new about this kind of financial investment, here are a few pros and cons of investing in Dividend Performers:
Pros:
- Reduced Risk – Unlike other forms of investment, a mutual fund like Dividend Performers comes with a reduced portfolio through the use of diversification. It means the mutual funds can invest in a wide range of securities. Thus, it’s incredibly crucial to keep track of the growth of your mutual fund mutual funds. That way, you’ll know if they reduce the risks by giving you a good return.
- Convenient and Fair Pricing – They’re convenient to buy and usually require low minimum investments. Because of fair pricing, price fluctuations are reduced throughout the day.
- Professional Portfolio Management – When you own Dividend Performers’ Fund, you’ll need to pay a management fee as included in your expense ratio. This fee will be used to get a professional portfolio manager who will do the selling and buying of bonds, stocks, and many more. The management fee you’re going to pay is relatively small for having professional help in the handling/management of an investment portfolio.
- Reinvestment of Dividend – By investing in mutual funds, dividends and other interest income are declared. Thus, these funds can be used to buy additional shares in the Fund, which can help your investment grow and expand.
Cons:
- The Dividend Performers’ Fund is new and has a limited operating history. Hence, there can be no guarantee that the Fund’s objective will fully materialize.
- The Fund isn’t insured by the Federal Deposit Insurance Corporation (FDIC), an independent agency that insures deposits in U.S banks.
- The Fund isn’t also insured by any government agency and has no bank guarantee. Hence, the possibility of losing value is high.
Final Thoughts
Typically, all investment strategies, including transactions made with Dividend Performers come with high risks. It’s, therefore, essential that investors should thoroughly consider how the Fund will achieve its investment objectives.
If you’re looking to invest in Dividend Performers, make a decision based on personal factors, such as net worth, age, income, and even risk tolerance. That way, you’ll know what to expect from your investments moving forward.
