Top 7 Dividend Yield Funds gave upto 60% return :Dividend yield mutual funds have performed well in the last one year, with LIC Mutual Fund’s Dividend Yield Fund giving a return of more than 60%. Apart from this, other 6 dividend yield funds have also given profits ranging from 43% to 53%. Investment in strong and regularly profitable companies can be considered a major reason for the success of these funds. Let us understand the features of these funds and their performance in detail.
Excellent performance of LIC MF Dividend Yield Fund
LIC MF Dividend Yield Fund has given a return of 60.43% on direct plan and 58.76% on regular plan in the last 1 year. In terms of returns in the last one year, it is at the top in the category of dividend yield funds. Apart from this, many other funds in this category have also given excellent returns, including dividend yield funds of HDFC, ICICI, UTI, Aditya Birla and Templeton India.
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Top 7 Dividend Yield Funds and their Returns
The benchmark for all the top 7 dividend yield funds detailed below is the NIFTY 500 Total Return Index, which has a one-year return of 39.98%. According to this, all the top 7 funds have performed better than the benchmark in one year. Due to the exposure to equity, the risk level of all these funds is very high:
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1. LIC MF Dividend Yield Fund
– Last 1 Year Return (Direct Plan): 60.43%
– Last 1 Year Return (Regular Plan): 58.76%
– Assets under management (AUM): Rs 419.32 crore
2. ICICI Prudential Dividend Yield Equity Fund
– Last 1 Year Return (Direct Plan): 53.32%
– Last 1 Year Return (Regular Plan): 51.31%
– Assets under management (AUM): Rs 5,000.03 crore
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3.UTI Dividend Yield Fund
– Last 1 Year Return (Direct Plan): 51.41%
– Last 1 Year Return (Regular Plan): 50.52%
– Assets under management (AUM): Rs 4,460.98 crore
4. Aditya Birla Sun Life Dividend Yield Fund
– Last 1 Year Return (Direct Plan): 49.73%
– Last 1 Year Return (Regular Plan): 48.54%
– Assets under management (AUM): Rs 1,607.01 crore
5. Templeton India Equity Income Fund
– Last 1 Year Return (Direct Plan): 46.94%
– Last 1 Year Return (Regular Plan): 45.77%
– Assets under management (AUM): Rs 2,481.95 crore
6. Sundaram Dividend Yield Fund
– Last 1 Year Return (Direct Plan): 43.94%
– Last 1 Year Return (Regular Plan): 42.05%
– Asset under management (AUM): Rs 965.30 crore
7. HDFC Dividend Yield Fund
– Last 1 Year Return (Direct Plan): 43.85%
– Last 1 Year Return (Regular Plan): 41.99%
– Assets under management (AUM): Rs 6,327.08 crore
(Source: AMFI)
Features of Dividend Yield Funds
1. Invest in strong companies:DiDividend Yield Funds invest in companies that pay dividends regularly. This gives investors a stable and regular income. These funds can be a better option especially for retired and low-risk investors.
2. Low risk :Dividend yield funds are considered less risky than other equity mutual funds. They invest in companies that have a strong financial position and have been paying dividends for a long time. This means that even during market turmoil, these funds are relatively less likely to be affected.
3. Better returns in the long term:Although dividend yield funds do not always beat the market in capital appreciation, they can give good returns in the long run. Apart from this, the benefit of compounding is also available by reinvesting the dividends.
4. Benefit of diversification:Dividend yield funds invest in many sectors and companies, which gives investors the benefit of diversification. This helps in minimizing losses during market downturns.
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For whom are these funds better?
Dividend yield funds are considered comparatively safer because they invest in companies that pay regular dividends. This is why dividend yield funds can be an excellent option for investors who want to invest in strong companies that earn consistent profits. The recent performance of LIC MF and other dividend yield funds shows that these funds are capable of giving good returns. But the past returns of mutual funds cannot be considered a guarantee of similar performance in the future. Therefore, before making any investment in equity, investors must consider their financial targets and risk tolerance.
(Disclaimer: The purpose of this article is only to provide information about the scheme, not to recommend investment. The past returns of a mutual fund cannot be considered a guarantee of similar performance in the future. Take any investment decision only after consulting your investment advisor.)
