Top Performing Dividend Yield Funds in 1 Year

The table below shows Top Performing Dividend Yield Funds in 1 Year based on AUM, NAV and Minimum SIP.

Introduction to Top Performing Dividend Yield Funds in 1 Year

SBI Dividend Yield Fund

SBI Dividend Yield Fund Direct Growth is an Equity Mutual Fund Scheme launched by SBI Mutual Fund. This scheme was made available to investors on 29 Jun 1987. 

SBI Dividend Yield Fund is a Dividend Yield Fund with an AUM of ₹9,207.03 Crores, a 5-year CAGR of 0% and an expense ratio of 0.76%, with an exit load of 1%. The fund allocates 89.3% to equity and 5.1% to cash, with no debt exposure, focusing primarily on equity investments while maintaining a small liquidity reserve.

HDFC Dividend Yield Fund

HDFC Dividend Yield Fund Direct Growth is an Equity Mutual Fund Scheme launched by HDFC Mutual Fund. This scheme was made available to investors on 10 Dec 1999. 

HDFC Dividend Yield Fund is a Dividend Yield Fund with an AUM of ₹6,027.93 Crores, a 5-year CAGR of 0% and an expense ratio of 0.56%, with an exit load of 1%. The fund holds 97.8% in equity and 1.3% in cash, with no debt, emphasizing a strong equity focus with minimal cash for liquidity.

ICICI Pru Dividend Yield Equity Fund

ICICI Prudential Dividend Yield Equity Fund Direct Growth is an Equity Mutual Fund Scheme launched by ICICI Prudential Mutual Fund. This scheme was made available to investors on 12 Oct 1993.

ICICI Pru Dividend Yield Equity Fund is a Dividend Yield Fund with an AUM of ₹4,256.91 Crores, a 5-year CAGR of 29.93% and an expense ratio of 0.53%, with an exit load of 1%. The fund allocates 93.2% to equity, 0.8% to debt and 4.7% to cash, balancing equity exposure with a small allocation to debt and liquidity.

UTI Dividend Yield Fund

UTI Dividend Yield Fund Direct-Growth is an Equity Mutual Fund Scheme launched by UTI Mutual Fund. This scheme was made available to investors on 14 Nov 2002.

UTI Dividend Yield Fund is a Dividend Yield Fund with an AUM of ₹4,071.32 Crores, a 5-year CAGR of 25.34% and an expense ratio of 1.41%, with an exit load of 1%. The fund holds 93.6% in equity, 0.2% in debt and 6.2% in cash, primarily focused on equity with a small buffer in debt and liquidity.

Templeton India Equity Income Fund

Templeton India Equity Income Direct Plan-Growth is an Equity Mutual Fund Scheme launched by Franklin Templeton Mutual Fund. This scheme was made available to investors on 19 Feb 1996. 

Templeton India Equity Income Fund is a Dividend Yield Fund with an AUM of ₹2,510.47 Crores, a 5-year CAGR of 29.07% and an expense ratio of 1.23%, with an exit load of 1%. The fund allocates 87.6% to equity and 6.4% to cash, with no debt exposure, focusing on equity with a moderate liquidity reserve for flexibility.

Aditya Birla SL Dividend Yield Fund

Aditya Birla Sun Life Dividend Yield Fund Direct Growth is an Equity Mutual Fund Scheme launched by Aditya Birla Sun Life Mutual Fund. This scheme was made available to investors on 23 Dec 1994.

Aditya Birla SL Dividend Yield Fund is a Dividend Yield Fund with an AUM of ₹1,561.84 Crores, a 5-year CAGR of 28.19% and an expense ratio of 1.40%, with an exit load of 1%. The fund allocates 98% to equity and 2% to cash, with no debt exposure, primarily focusing on equity investments while maintaining a small cash reserve for liquidity.

Tata Dividend Yield Fund

Tata Dividend Yield Fund Direct Growth is an Equity Mutual Fund Scheme launched by Tata Mutual Fund. This scheme was made available to investors on 30 Jun 1995. 

Tata Dividend Yield Fund is a Dividend Yield Fund with an AUM of ₹1,037.66 Crores, a 5-year CAGR of 0% and an expense ratio of 0.45%, with an exit load of 1%. The fund holds 96.7% in equity, 0.3% in debt and 3% in cash, balancing equity exposure with a small allocation to debt and liquidity.

Sundaram Dividend Yield Fund

Sundaram Dividend Yield Fund Direct Growth is an Equity Mutual Fund Scheme launched by Sundaram Mutual Fund. This scheme was made available to investors on 26 Feb 1996.

Sundaram Dividend Yield Fund is a Dividend Yield Fund with an AUM of ₹976.95 Crores, a 5-year CAGR of 25.20%, and an expense ratio of 0.96%, with an exit load of 1%. The fund’s asset allocation includes 95.1% in equity and 4.9% in cash, with no debt exposure, focusing on equity with a moderate liquidity buffer.

LIC MF Dividend Yield Fund

LIC MF Dividend Yield Fund Direct-Growth is an Equity Mutual Fund Scheme launched by LIC Mutual Fund. This scheme was made available to investors on 20 Apr 1994.

LIC MF Dividend Yield Fund is a Dividend Yield Fund with an AUM of ₹330.46 Crores, a 5-year CAGR of 27.82% and an expense ratio of 1.45%, with an exit load of 1%. The fund allocates 95.6% to equity and 4.4% to cash, with no debt, emphasizing a strong equity position with a small cash reserve for liquidity.

What Are Dividend Yield Funds?

Dividend Yield Funds are mutual funds that invest primarily in dividend-paying stocks, focusing on companies with a consistent track record of distributing dividends. These funds aim to generate regular income for investors along with potential capital appreciation.

Features Of Top Performing Dividend Yield Funds in 1 Year

The main features of top-performing dividend yield funds include high dividend payouts, consistent performance, diversification and risk management, providing investors with a balanced mix of income and growth opportunities in a stable investment environment.

• High Dividend Payouts: These funds invest in companies with a history of high dividend yields, ensuring regular income for investors alongside potential capital appreciation.

• Consistent Performance: Top-performing dividend yield funds are known for delivering steady returns even in volatile markets, thanks to their focus on financially strong, dividend-paying companies.

• Diversification: These funds typically invest across various sectors and industries, reducing concentration risk and providing diversified exposure to dividend-generating companies.

• Risk Management: By focusing on stable, income-generating companies, dividend yield funds help manage market volatility, making them suitable for conservative investors seeking lower risk with steady returns.

Best Performing Dividend Yield Funds in 1 Year

The table below shows Best Performing Dividend Yield Funds in 1 Year based on Expense Ratio and Minimum SIP.

Top Performing Dividend Yield Funds in 1 Year In India

The table below shows the top-performing dividend Yield Funds in 1 Year In India based on CAGR 3Y and Minimum SIP. 

Top Performing Dividend Yield Funds in 1 Year List 

The table below shows the Top Performing Dividend Yield Funds in 1 Year List based on Exit Load and AMC.

Factors To Consider When Investing In Top Performing Dividend Yield Funds in 1 Year

The main factors to consider when investing in top-performing dividend yield funds include dividend payout consistency, sector diversification, expense ratio and market conditions. These elements significantly influence the fund’s performance and its ability to generate steady returns.

• Dividend Payout Consistency: Focus on funds that invest in companies with a track record of consistent and stable dividend payouts, as this ensures reliable income for investors.

• Sector Diversification: A well-diversified portfolio across various sectors reduces concentration risk, making the fund less vulnerable to sector-specific downturns and providing more stable returns.

• Expense Ratio: Look for funds with a low expense ratio, as this will help maximize your net returns, particularly in funds designed to generate regular income.

• Market Conditions: Consider the overall market environment. In a stable or growing market, dividend-paying companies tend to perform well, but a downturn could affect dividend yields and capital appreciation.

How To Invest In Top Performing Dividend Yield Funds in 1 Year?

To invest in top-performing dividend yield funds, research the fund’s historical performance, dividend payout track record and expense ratio. You can invest through a lump sum or SIP via trusted investment platforms or brokers like Alice Blue, ensuring the fund aligns with your financial goals.

Advantages Of Investing In Top Performing Dividend Yield Funds in 1 Year

The main advantages of investing in top-performing dividend yield funds include regular income, potential for capital growth, diversification and risk mitigation. These funds offer a blend of stable income and growth potential for investors seeking balanced returns.

• Regular Income: Dividend yield funds provide a steady income stream by investing in companies that pay consistent dividends, making them appealing to income-seeking investors.

• Capital Growth Potential: Alongside dividends, these funds can offer capital appreciation by investing in well-established companies with growth potential, providing both income and growth.

• Diversification: Dividend yield funds often include a variety of sectors and industries, ensuring a diversified portfolio that minimizes the risk of any single sector’s underperformance.

• Risk Mitigation: By focusing on dividend-paying companies, these funds tend to invest in stable, financially sound companies, which helps mitigate risk during market volatility.

Risks Of Investing In Top Performing Dividend Yield Funds in 1 Year

The main risks of investing in dividend-yield funds include interest rate risk, market volatility, dividend cuts and sector-specific risks. While these funds aim to provide steady income, investors should be aware of potential challenges that could impact returns.

• Interest Rate Risk: Rising interest rates may lead to reduced attractiveness of dividend-paying stocks, as investors may prefer fixed-income assets with better yields, affecting fund performance.

• Market Volatility: Dividend yield funds are subject to market risk. In times of economic downturn, even dividend-paying companies may experience declines in stock prices, reducing the fund’s value.

• Dividend Cuts: Companies may reduce or eliminate dividends during tough economic times, impacting the fund’s ability to generate consistent income for investors.

• Sector-Specific Risks: Funds concentrated in certain sectors, like utilities or financials, may be more vulnerable to sector-specific risks, leading to higher volatility and potential underperformance.

Importance of Dividend Yield Funds

Dividend yield funds play a crucial role in providing consistent income while offering capital appreciation. For income-focused investors, these funds ensure a reliable stream of dividends, which can help meet financial needs without the need to sell assets.

Additionally, dividend yield funds invest in companies that tend to be stable, mature, and financially sound, making them an attractive option for conservative investors. Their ability to balance income and growth makes them important for diversified investment strategies.

How Long to Stay Invested in Dividend Yield Funds?

Dividend yield funds are ideal for long-term investment horizons of 3 to 5 years or more. Staying invested allows you to benefit from both the dividend payouts and the potential capital appreciation that mature companies typically provide over time.

However, the investment duration should be aligned with your financial goals. If you’re relying on regular income, a longer holding period will help mitigate market fluctuations and ensure consistent dividend returns over the years.

Tax Implications of Investing in Dividend Yield Funds

The dividends received from dividend yield funds are added to the investor’s income and taxed as per their applicable income tax slab, making them subject to individual tax rates. This can increase the overall tax liability, especially for high-income earners.

If you sell units of the fund, any capital gains will be taxed. For holdings under 1 year, short-term capital gains are taxed at 15%, while for holdings over 1 year, long-term capital gains exceeding ₹1 lakh are taxed at 10% without indexation benefits.

Future of Dividend Yield Funds

The future of dividend yield funds remains promising, especially as more investors seek stable income sources amidst market volatility. With increasing demand for income-generating investments, companies focusing on dividend payouts will likely remain attractive to fund managers and investors.

However, the future performance of dividend yield funds will depend on economic conditions and corporate profitability. If companies maintain strong dividend policies, these funds will continue to play an important role in long-term portfolios.

Top Performing Dividend Yield Funds in 1 Year – FAQs  

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.