The below table shows the Best Dividend Yield Mutual Funds based on AUM, NAV, and minimum SIP.
| Name | AUM Cr | NAV | Minimum SIP |
| SBI Dividend Yield Fund | 9,207.03 | 16.04 | 3,000.00 |
| HDFC Dividend Yield Fund | 6,027.93 | 27.35 | 1,500.00 |
| ICICI Pru Dividend Yield Equity Fund | 4,256.91 | 57.39 | 5,000.00 |
| UTI Dividend Yield Fund | 4,071.32 | 197.20 | 100.00 |
| Templeton India Equity Income Fund | 2,510.47 | 161.18 | 100.00 |
| Aditya Birla SL Dividend Yield Fund | 1,561.84 | 524.85 | 100.00 |
| Tata Dividend Yield Fund | 1,037.66 | 19.64 | 150.00 |
| Sundaram Dividend Yield Fund | 976.95 | 153.92 | 100.00 |
| LIC MF Dividend Yield Fund | 330.46 | 33.71 | 100.00 |
Content:
- Introduction to Dividend Yield Funds
- Dividend Yield Funds Meaning
- Features of the Best Dividend Yield Mutual Funds India
- Top Dividend Yield Funds Based on Expense Ratio
- Best Dividend Yield Mutual Funds Based on 3Y CAGR
- Best Mutual Fund Dividend Yield Based on Exit Load
- Dividend Yield Fund Returns
- Historical Performance of The Best Dividend Mutual Funds In India
- Factors to Consider When Investing in Dividend Yield Funds
- How to Invest in Top Dividend Yield Mutual Funds India?
- Impact of Market Trends on Dividend Mutual Funds In India
- How Dividend Funds Perform in Volatile Markets?
- Advantages of Investing in The Best Dividend Mutual Fund India
- Risks of Investing in Dividend Yield Funds
- Contribution of Dividend Funds to Portfolio Diversification
- Who Should Invest in The Best Dividend Yield Fund?
- Impact of Fund Manager Expertise on Dividend Yield Funds Performance
- How Much Money Should I Invest in Dividend Yield Funds In India?
- FAQs – List Of Dividend Yield Funds
Introduction to Dividend Yield Funds
SBI Dividend Yield Fund
SBI Dividend Yield Fund, a Dividend Yield Fund, has an AUM of ₹9,207.03 crore, an exit load of 1%, and an expense ratio of 0.76%.
SBI Dividend Yield Fund Direct-Growth is an equity mutual fund scheme introduced by SBI Mutual Fund. Launched on 29 June 1987, the fund is managed by Rohit Shimpi. As of 3rd September 2024, it holds an Asset Under Management (AUM) of ₹9,207.03 crore, with an NAV of ₹16.23.
The fund is categorized as Very High Risk, requiring a minimum SIP investment of ₹500 and a minimum lumpsum investment of ₹5,000. An exit load of 1% applies for redemptions exceeding 10% of the investment within one year.
HDFC Dividend Yield Fund
HDFC Dividend Yield Fund, a Dividend Yield Fund, has an AUM of ₹6,027.93 crore, an exit load of 1%, and an expense ratio of 0.56%.
HDFC Dividend Yield Fund Direct Growth, an equity mutual fund from HDFC Mutual Fund, was launched on 10 December 1999. The current fund manager is Gopal Agrawal. With an AUM of ₹6,027.93 crore and a NAV of ₹27.92 as of 3rd September 2024.
The fund is rated as Very High risk. It requires a minimum SIP investment of ₹100 and a minimum lumpsum investment of ₹100, with an exit load of 1% for units redeemed within one year.
ICICI Pru Dividend Yield Equity Fund
ICICI Pru Dividend Yield Equity Fund, a Dividend Yield Fund with an AUM of ₹4,256.91 crore, has a 5-year CAGR of 29.93%, an exit load of 1%, and an expense ratio of 0.53%.
ICICI Prudential Dividend Yield Equity Fund Direct Growth is an equity mutual fund scheme from ICICI Prudential Mutual Fund, available to investors since 12 October 1993. Managed by Mrinal Singh and Mittul Kalawadia, the fund’s AUM stands at ₹4,256.91 crore with an NAV of ₹58.49 as of 3rd September 2024.
Classified as Very High Risk, the minimum SIP investment is ₹100, and the minimum lumpsum investment is ₹5,000. The exit load is 1% if redeemed within one year.
UTI Dividend Yield Fund
UTI Dividend Yield Fund, a Dividend Yield Fund with an AUM of ₹4,071.32 crore, has a 5-year CAGR of 25.34%, an exit load of 1%, and an expense ratio of 1.41%.
UTI Dividend Yield Fund Direct Growth, launched by UTI Mutual Fund on 14 November 2002, is an equity mutual fund managed by Swati Kulkarni. The fund has an AUM of ₹4,071.32 crore and a NAV of ₹200.42 as of 3rd September 2024.
Rated as Very High Risk, the minimum SIP investment is ₹500, and the minimum lumpsum investment is ₹5,000. An exit load of 1% is charged for redemptions made within one year.
Templeton India Equity Income Fund
Templeton India Equity Income Fund, categorized as a Dividend Yield Fund, has an AUM of ₹2,510.47 crore, a 5-year CAGR of 29.07%, an exit load of 1%, and an expense ratio of 1.23%.
Templeton India Equity Income Direct Plan-Growth is an equity mutual fund offered by Franklin Templeton Mutual Fund, launched on 19 February 1996. Managed by Vikas Chiranwal and Srikesh Nair, the fund has an Asset Under Management (AUM) of ₹2,510.47 crore with an NAV of ₹163.38 as of 3rd September 2024.
Classified as Very High Risk, the minimum SIP investment is ₹500, and the minimum lumpsum investment is ₹5,000. An exit load of 1% applies for redemptions within one year.
Aditya Birla SL Dividend Yield Fund
Aditya Birla SL Dividend Yield Fund, a Dividend Yield Fund with an AUM of ₹1,561.84 crore, has a 5-year CAGR of 28.19%, an exit load of 1%, and an expense ratio of 1.40%.
Aditya Birla Sun Life Dividend Yield Fund Direct Growth is an equity mutual fund scheme from Aditya Birla Sun Life Mutual Fund, launched on 23 December 1994. Managed by Satyabrata Mohanty and Vineet Maloo, the fund holds an AUM of ₹1,561.84 crore and an NAV of ₹530.37 as of 3rd September 2024.
Rated Very High risk, the fund requires a minimum SIP investment of ₹100 and a minimum lumpsum investment of ₹1,000. An exit load of 1% applies if redeemed within 90 days.
Tata Dividend Yield Fund
Tata Dividend Yield Fund, categorized as a Dividend Yield Fund, has an AUM of ₹1,037.66 crore, an exit load of 1%, and an expense ratio of 0.45%.
Tata Dividend Yield Fund Direct Growth is an equity mutual fund scheme from Tata Mutual Fund, available to investors since 30 June 1995. Managed by Murthy Nagarajan, the fund currently has an AUM of₹1,037.66 crore with a NAV of ₹19.90 as of 3rd September 2024.
Rated as Very High Risk, the minimum SIP investment is ₹100, and the minimum lumpsum investment is ₹5,000. For redemptions exceeding 12% of the investment, a 1% exit load applies within 365 days.
Sundaram Dividend Yield Fund
Sundaram Dividend Yield Fund, categorized as a Dividend Yield Fund, has an AUM of ₹976.95 crore, a 5-year CAGR of 25.20%, an exit load of 1%, and an expense ratio of 0.96%.
Sundaram Dividend Yield Fund Direct Growth is an equity mutual fund from Sundaram Mutual Fund, launched on 26 February 1996. Managed by Dhimant Shah, the fund’s AUM is₹976.95 crore, with an NAV of ₹156.80 as of 3rd September 2024.
The fund is rated Very High Risk, with a minimum SIP investment of ₹500 and a minimum lumpsum investment of ₹5,000. A 1% exit load applies for redemptions exceeding 24% of the investment within 365 days.
LIC MF Dividend Yield Fund
LIC MF Dividend Yield Fund, a Dividend Yield Fund with an AUM of ₹330.46 crore, has a 5-year CAGR of 27.82%, an exit load of 1%, and an expense ratio of 1.45%.
LIC MF Dividend Yield Fund Direct-Growth is an equity mutual fund launched by LIC Mutual Fund on 20 April 1994. Managed by Alok Ranjan, the fund holds an AUM of ₹330.46 crore with an NAV of ₹34.26 as of 3rd September 2024.
Rated as Very High Risk, the minimum SIP investment is ₹1,000, and the minimum lumpsum investment is ₹5,000. For units exceeding 12% of the investment, a 1% exit load is charged for redemptions within 12 months.
Dividend Yield Funds Meaning
Dividend Yield Funds are mutual funds that invest primarily in equity stocks of companies known for paying high dividends. These funds aim to provide investors with regular income through dividend payouts, along with potential capital appreciation over time.
Dividend Yield Funds focus on companies with stable financials and a consistent dividend payment history. These funds are suitable for conservative investors seeking steady income while also benefiting from equity market growth, making them a balanced investment option.
Features of the Best Dividend Yield Mutual Funds India
The main features of the best Dividend Yield Mutual Funds in India include regular dividend payouts, a focus on stable companies, and the potential for capital appreciation, offering a balanced approach to both income generation and equity growth.
- Stable Companies
Dividend Yield Funds invest in companies with a strong track record of paying dividends consistently. These companies typically have stable financials, low debt, and a reliable cash flow, ensuring steady dividend payments and minimizing risks for investors.
- Regular Dividend Income
These funds aim to generate regular income through dividends. Investors can expect periodic payouts, depending on the performance of the underlying stocks, which makes them suitable for those looking for a steady income stream.
- Capital Appreciation
In addition to dividend income, Dividend Yield Funds also offer the potential for capital appreciation. As the stock prices of the invested companies grow over time, investors can benefit from the overall appreciation of the fund’s net asset value (NAV).
- Low-Risk Approach
By focusing on established companies with a history of paying dividends, Dividend Yield Funds tend to be less volatile compared to growth-focused equity funds. This makes them a relatively low-risk option for conservative investors seeking both income and long-term growth.
Top Dividend Yield Funds Based on Expense Ratio
The table below shows Top Dividend Yield Funds Based on Expense Ratio.
| Name | Expense Ratio | Minimum SIP % |
| Tata Dividend Yield Fund | 0.45 | 150.00 |
| ICICI Pru Dividend Yield Equity Fund | 0.53 | 5,000.00 |
| HDFC Dividend Yield Fund | 0.56 | 1,500.00 |
| SBI Dividend Yield Fund | 0.76 | 3,000.00 |
| Sundaram Dividend Yield Fund | 0.96 | 100.00 |
| Templeton India Equity Income Fund | 1.23 | 100.00 |
| Aditya Birla SL Dividend Yield Fund | 1.40 | 100.00 |
| UTI Dividend Yield Fund | 1.41 | 100.00 |
| LIC MF Dividend Yield Fund | 1.45 | 100.00 |
Best Dividend Yield Mutual Funds Based on 3Y CAGR
The table below shows the Best Dividend Yield Mutual Funds Based on 3Y CAGR
and Minimum SIP
| Name | CAGR 3Y % | Minimum SIP Rs |
| ICICI Pru Dividend Yield Equity Fund | 31.57 | 5,000.00 |
| HDFC Dividend Yield Fund | 28.08 | 1,500.00 |
| Aditya Birla SL Dividend Yield Fund | 27.72 | 100.00 |
| LIC MF Dividend Yield Fund | 26.94 | 100.00 |
| Templeton India Equity Income Fund | 26.85 | 100.00 |
| Tata Dividend Yield Fund | 22.95 | 150.00 |
| UTI Dividend Yield Fund | 22.45 | 100.00 |
| Sundaram Dividend Yield Fund | 21.46 | 100.00 |
Best Mutual Fund Dividend Yield Based on Exit Load
The table below shows the Best Mutual Fund Dividend Yield Based on the Exit Load
| Name | AMC | Exit Load % |
| SBI Dividend Yield Fund | SBI Funds Management Limited | 1.00 |
| HDFC Dividend Yield Fund | HDFC Asset Management Company Limited | 1.00 |
| ICICI Pru Dividend Yield Equity Fund | ICICI Prudential Asset Management Company Limited | 1.00 |
| UTI Dividend Yield Fund | UTI Asset Management Company Private Limited | 1.00 |
| Templeton India Equity Income Fund | Franklin Templeton Asset Management (India) Private Limited | 1.00 |
| Aditya Birla SL Dividend Yield Fund | Aditya Birla Sun Life AMC Limited | 1.00 |
| Tata Dividend Yield Fund | Tata Asset Management Private Limited | 1.00 |
| Sundaram Dividend Yield Fund | Sundaram Asset Management Company Limited | 1.00 |
| LIC MF Dividend Yield Fund | LIC Mutual Fund Asset Management Limited | 1.00 |
Dividend Yield Fund Returns
The table below shows Dividend Yield Fund Returns based on CAGR 1Y.
| Name | Absolute Returns – 1Y % | Minimum SIP Rs |
| LIC MF Dividend Yield Fund | 62.78 | 100.00 |
| ICICI Pru Dividend Yield Equity Fund | 55.66 | 5,000.00 |
| Aditya Birla SL Dividend Yield Fund | 55.48 | 100.00 |
| Templeton India Equity Income Fund | 55.15 | 100.00 |
| UTI Dividend Yield Fund | 54.13 | 100.00 |
| Sundaram Dividend Yield Fund | 46.36 | 100.00 |
| HDFC Dividend Yield Fund | 46.25 | 1,500.00 |
| SBI Dividend Yield Fund | 41.04 | 3,000.00 |
| Tata Dividend Yield Fund | 40.95 | 150.00 |
Historical Performance of The Best Dividend Mutual Funds In India
The table below shows the Historical Performance of The Best Dividend Mutual Funds In India based on CAGR 5Y.
| Name | CAGR 5Y % | Minimum SIP Rs |
| ICICI Pru Dividend Yield Equity Fund | 29.93 | 5,000.00 |
| Templeton India Equity Income Fund | 29.07 | 100.00 |
| Aditya Birla SL Dividend Yield Fund | 28.19 | 100.00 |
| LIC MF Dividend Yield Fund | 27.82 | 100.00 |
| UTI Dividend Yield Fund | 25.34 | 100.00 |
| Sundaram Dividend Yield Fund | 25.20 | 100.00 |
Factors to Consider When Investing in Dividend Yield Funds
The main factors to consider when investing in Dividend Yield Funds include the fund’s dividend track record, the stability of the companies in the portfolio, risk exposure, and the potential for both income generation and capital appreciation.
- Dividend Track Record
Examine the fund’s history of dividend payouts and consistency. A strong track record indicates the fund’s ability to generate regular income for investors, reflecting the stability of the companies in which the fund invests.
- Company Stability
Assess the financial health of the companies in the portfolio. Stable companies with solid cash flows and low debt are more likely to provide regular dividends, making the fund a secure income source for investors.
- Risk Exposure
Understand the level of risk associated with the fund. Dividend Yield Funds tend to focus on mature companies, which generally have lower volatility. However, it’s essential to evaluate sector concentration and other risk factors before investing.
- Capital Appreciation Potential
In addition to dividend income, consider the potential for capital appreciation. While these funds focus on regular income, long-term gains from the appreciation of the underlying stocks can also enhance overall returns.
How to Invest in Top Dividend Yield Mutual Funds India?
Investing in top Dividend Yield Mutual Funds in India involves opening an investment account with a trusted brokerage, researching funds with a consistent dividend history, and reviewing the expense ratio and risk level. After evaluating, you can invest via lump sum or a systematic investment plan (SIP).
Impact of Market Trends on Dividend Mutual Funds In India
Market trends significantly impact Dividend Yield Funds. In bullish markets, companies perform well, often leading to higher dividend payouts and capital appreciation for investors. Conversely, bearish trends may reduce dividend payouts as companies retain earnings to manage operational costs.
Dividend Yield Funds tend to perform better in stable or growing markets. As companies grow their earnings, they may increase dividends, which positively affects the fund’s returns. During economic slowdowns, dividend cuts may occur, affecting the overall performance of the fund.
Despite these market fluctuations, Dividend Yield Funds are often considered safer than growth-oriented equity funds during market volatility. Their focus on financially stable companies with consistent dividend payments provides a cushion against sharp market corrections.
How Dividend Funds Perform in Volatile Markets?
Dividend Yield Funds tend to perform relatively better in volatile markets compared to growth-focused funds. Since these funds invest in stable, dividend-paying companies, the consistent income from dividends helps cushion the impact of market fluctuations on overall returns.
While capital appreciation may slow down during volatility, the steady dividend payouts provide a reliable income stream for investors. This makes Dividend Yield Funds a more attractive option for those seeking stability and lower risk, even in uncertain market conditions.
Advantages of Investing in The Best Dividend Mutual Fund India
The main advantages of investing in the best Dividend Mutual Funds in India include regular income, potential for capital appreciation, lower volatility, and portfolio diversification, making them an attractive option for both conservative and long-term investors.
- Regular Income
Dividend Yield Funds provide a steady stream of income through dividend payouts, making them an ideal choice for investors looking for periodic cash flow in addition to capital growth over time.
- Capital Appreciation
Along with regular dividend payouts, investors benefit from the potential for capital appreciation as the value of the underlying stocks increases. This dual benefit makes Dividend Yield Funds an attractive long-term investment option.
- Lower Volatility
These funds tend to invest in established companies with stable financials, resulting in lower volatility compared to high-growth equity funds. This makes them a safer investment choice, especially for conservative investors seeking steady returns.
- Portfolio Diversification
Investing in Dividend Yield Funds adds an income-generating component to a portfolio, which can complement growth-oriented or fixed-income investments. This diversification can balance risk and return, improving overall portfolio performance during market volatility.
Risks of Investing in Dividend Yield Funds
The main risks of investing in Dividend Yield Funds include potential dividend cuts, limited capital appreciation, sector concentration risks, and tax inefficiencies, which could impact overall returns and stability, especially during market downturns or economic slowdowns.
- Dividend Cuts
Companies may reduce or eliminate dividends during economic downturns or financial distress, impacting the fund’s ability to provide regular income. This risk is particularly high in volatile or uncertain market conditions, leading to lower-than-expected returns.
- Limited Capital Appreciation
While Dividend Yield Funds focus on income generation, they may offer limited capital appreciation compared to growth-focused equity funds. Investors seeking higher growth potential may need to balance their portfolio with other growth-oriented investments.
- Sector Concentration Risk
These funds may have a higher concentration in specific sectors that typically offer high dividends, such as utilities or consumer goods. This concentration exposes investors to sector-specific risks, which can negatively impact the fund’s performance if the sector underperforms.
- Tax Inefficiencies
Dividends are subject to taxation, which may reduce the overall return on investment for investors. It’s essential to consider the tax implications of dividend income, especially for investors in higher tax brackets.
Contribution of Dividend Funds to Portfolio Diversification
Dividend Yield Funds play a crucial role in portfolio diversification by providing a steady income stream and reducing overall volatility. Their focus on stable companies with regular dividend payouts makes them a reliable source of income, especially during market fluctuations.
By adding Dividend Yield Funds to a portfolio, investors can balance high-growth, high-risk investments with more stable, income-generating assets. This diversification helps smooth out returns, providing stability and reducing overall portfolio risk during volatile market periods.
Who Should Invest in The Best Dividend Yield Fund?
Dividend Yield Funds are ideal for conservative investors seeking steady income with moderate growth potential. Retirees and those seeking regular payouts often benefit from these funds, as they provide reliable income through dividends while preserving capital.
Long-term investors looking for a balanced approach between income and capital appreciation can also benefit from Dividend Yield Funds. These funds provide consistent returns while reducing the volatility associated with more aggressive growth funds, making them suitable for risk-averse investors.
Impact of Fund Manager Expertise on Dividend Yield Funds Performance
Fund manager expertise plays a crucial role in the performance of Dividend Yield Funds. A skilled manager identifies stable, high-dividend-paying companies, ensuring consistent returns. Their ability to balance risk and capital appreciation directly influences the fund’s overall performance.
An experienced fund manager can also navigate market volatility, adjusting the portfolio to mitigate risks while maintaining income. Their decision-making in sector allocation and stock selection significantly impacts the fund’s ability to generate steady dividends and long-term growth, making fund manager expertise vital for success.
How Much Money Should I Invest in Dividend Yield Funds In India?
The amount you should invest in Dividend Yield Funds depends on your financial goals, risk tolerance, and investment horizon. For conservative investors, allocating a moderate portion of your portfolio (around 10-20%) to these funds provides regular income and stability.
If you’re seeking a reliable income source or are closer to retirement, you may consider increasing your allocation. However, it’s essential to balance Dividend Yield Funds with growth-oriented and diversified investments to achieve a well-rounded portfolio that meets your long-term goals.
FAQs – List Of Dividend Yield Funds
Dividend Yield Mutual Funds invest in stocks of companies that regularly pay high dividends, providing investors with income through dividends while also offering potential capital appreciation over time.
Top Dividend Yield Funds # 1: SBI Dividend Yield Fund
Top Dividend Yield Funds # 2: HDFC Dividend Yield Fund
Top Dividend Yield Funds # 3: ICICI Pru Dividend Yield Equity Fund
Top Dividend Yield Funds # 4: UTI Dividend Yield Fund
Top Dividend Yield Funds # 5: Templeton India Equity Income Fund
Top Dividend Yield Funds based on AUM.
Best dividend mutual funds in India based on 1-year return include LIC MF Dividend Yield Fund, ICICI Pru Dividend Yield Equity Fund, Aditya Birla SL Dividend Yield Fund, Templeton India Equity Income Fund, and UTI Dividend Yield Fund, offering strong performance and reliable returns.
Dividend Yield Funds are generally considered safer than growth funds as they focus on stable companies with consistent dividends. However, risks like market volatility and dividend cuts still exist, requiring careful evaluation.
The best-performing Dividend Yield Funds vary over time, but top contenders often include those that invest in high-quality, dividend-paying companies with consistent payouts and strong financials. Research and comparison are essential.
To invest in the best Dividend Yield Mutual Funds, open a brokerage or investment account, research top funds based on historical performance, dividend track record, and risk level, and invest via lump sum or systematic investment plans (SIPs).
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
