The KT-HIDIV-D Fund invests in a mix of high-dividend stocks and fixed-income securities, ensuring a balance of income generation and risk management. The key asset classes include:

1. Dividend-Paying Equities (Stocks): A significant portion of the fund’s investments is in stocks that have a high dividend yield. These equities are typically established companies with a history of stable earnings and consistent dividend payouts.

2. Bonds: Fixed-income securities, such as government and corporate bonds, are included in the fund’s portfolio to provide stability and regular interest payments. Bonds help cushion against stock market volatility and offer a steady income stream.

3. Other Income-Producing Assets: The fund may also invest in other income-producing assets like real estate or REITs (Real Estate Investment Trusts), further diversifying its holdings and providing additional sources of income.

Performance and Risk Factors

The KT-HIDIV-D Fund’s performance is influenced by market conditions, interest rates, and the performance of the underlying dividend-paying stocks and bonds. While the fund is designed to minimize risk by diversifying its portfolio, investors should still be aware of potential risks, including:

• Market Risk: The value of the fund’s investments in stocks may fluctuate due to changes in market conditions, economic performance, or investor sentiment.

• Interest Rate Risk: Since the fund holds bonds, changes in interest rates can affect the value of the bond portion of the portfolio. Rising interest rates typically lead to a decline in bond prices.

• Dividend Risk: The fund’s dividend income is dependent on the performance of the dividend-paying stocks in the portfolio. If a company reduces or eliminates its dividend, the income generated by the fund may decrease.

• Credit Risk: For the bond portion of the portfolio, there is the risk that issuers may default on their debt, impacting the income and capital value of the bond investments.

Despite these risks, the fund’s diversified approach helps mitigate some of these factors, while the income-focused strategy provides a relatively more stable return compared to equity-only funds. shutdown123