New Delhi, July 15 (SocialNews.XYZ) Analysts have questioned as to how Zomato, which is a loss making company, fits into the investment framework of ICICI Dividend Yield Fund which invests in dividend yielding stocks.
Kartik Sankaran, Founder, Fiscal Fitness raised the issue in a comment on a social media platform.
"Hey folks at ICICI Prudential AMC Ltd. could you help understand how Zomato fits into the investment framework of the ICICI Dividend Yield Fund?" Sankaran asked.
"As per your website, this fund is suitable for investors who aim to invest in a portfolio of dividend-yielding stocks and achieve goals like Retirement Planning and Wealth Creation."
Digging into the SID the scheme objective is "... provide medium to long term capital gains and/or dividend distribution by predominantly investing in a well-diversified portfolio of equity and equity-related instruments of dividend yielding companies", he added.
"So how does a loss-making business fit into the criteria? I understand Zomato may have a great future and become the largest dividend payer in the country (sorry Reliance and TCS) but at the time of making investments, it does not have a dividend track record and should not be part of the universe for selecting stocks. As the largest AMC would expect some true to the label fund positioning. "
Source: IANS
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