New Delhi, March 7 -- If you are a new investor and exploring new schemes to invest, there are multiple options to choose from. From large cap funds to value funds and ELSS to thematic funds - there are options galore. There is no denying the fact that each category has its own set of advantages and characteristics. Here, we list out the key advantages of investing in dividend yield funds.

It is an interesting category for those investors who want to earn a regular income on their investment.

Dividend yield funds refer to mutual funds that invest predominantly in dividend-yielding stocks, with at least 65 per cent in stocks, per Sebi's categorisation of mutual funds.

"These funds provide an opportunity of potential wealth appreciation ...