Fixed Income Funds Payout

Those fixed income that give fixed dpu, will have to sell the underlying asset in event when payout not enough causing the NAV to drop.

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Those that pay base on portfolio value, whatever they get, they give you. So payout may be different everytime.

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Fixed dpu make the payout you going to get predictable. Fluctuating dpu you dont know how much you will get each time.

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However, when selecting a dividend payout fund we should look at total return. Make sure is positive.

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