Top Performing Dividend Yield Funds in 10 Years

The below table shows a list Of the Top Performing Dividend Yield Funds in 10 Years Based on AUM, NAV and minimum SIP.

Introduction to Top Performing Dividend Yield Funds in 10 Years

SBI Dividend Yield Fund  

SBI Dividend Yield Fund is a Dividend Yield mutual fund scheme from SBI Mutual Fund. This fund has been operational for 6 months, having been launched on March 14, 2023.

SBI Dividend Yield Fund falls under the Dividend Yield Fund category with an AUM of ₹9,207.03 crores, no 5-year CAGR, an exit load of 1% and an expense ratio of 0.76%. The SEBI risk category is Very High. Its asset allocation includes 89.66% in Equity, 5.25% in REITs & InvIT and 5.09% in Cash & Equivalents.

HDFC Dividend Yield Fund  

HDFC Dividend Yield Fund is a Dividend Yield mutual fund scheme from HDFC Mutual Fund. This fund has been operational for 3 years and 9 months, having been launched on December 18, 2020.

HDFC Dividend Yield Fund falls under the Dividend Yield Fund category with an AUM of ₹6,027.93 crores, no 5-year CAGR, an exit load of 1% and an expense ratio of 0.56%. The SEBI risk category is Very High. Its asset allocation includes 98.08% in Equity, 1.01% in Cash & Equivalents, 0.84% in REITs & InvIT and 0.07% in Rights.

ICICI Prudential Dividend Yield Equity Fund  

ICICI Prudential Dividend Yield Equity Fund is a Dividend Yield mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been operational for 10 years and 3 months, having been launched on April 25, 2014.

ICICI Prudential Dividend Yield Equity Fund falls under the Dividend Yield Fund category with an AUM of ₹4,256.91 crores, a 5-year CAGR of 29.93%, an exit load of 1% and an expense ratio of 0.53%. The SEBI risk category is Very High. Its asset allocation includes 92.13% in Equity, 6.06% in Cash & Equivalents, 1.34% in REITs & InvIT, 0.47% in Treasury Bills and 0.01% in Rights.

UTI Dividend Yield Fund  

UTI Dividend Yield Fund is a Dividend Yield mutual fund scheme from UTI Mutual Fund. This fund has been operational for 11 years and 7 months, having been launched on January 1, 2013.

UTI Dividend Yield Fund falls under the Dividend Yield Fund category with an AUM of ₹4,071.32 crores, a 5-year CAGR of 25.34%, an exit load of 1% and an expense ratio of 1.41%. The SEBI risk category is Very High. Its asset allocation includes 100% in Equity, with no allocation in other asset classes.

Templeton India Equity Income Fund  

Templeton India Equity Income Fund is a Dividend Yield mutual fund scheme from Franklin Templeton Mutual Fund. This fund has been operational for 11 years and 6 months, having been launched on January 1, 2013.

Templeton India Equity Income Fund falls under the Dividend Yield Fund category with an AUM of ₹2,510.47 crores, a 5-year CAGR of 29.07%, an exit load of 1% and an expense ratio of 1.23%. The SEBI risk category is Very High. Its asset allocation includes 83.52% in Equity, 7.13% in Cash & Equivalents, 6.07% in REITs & InvIT, 1.71% in ADR & GDR and 0.02% in Mutual Funds.

Aditya Birla Sun Life Dividend Yield Fund  

Aditya Birla Sun Life Dividend Yield Fund is a Dividend Yield mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been operational for 11 years and 6 months, having been launched on January 1, 2013.

Aditya Birla Sun Life Dividend Yield Fund falls under the Dividend Yield Fund category with an AUM of ₹1,561.84 crores, a 5-year CAGR of 28.19%, an exit load of 1% and an expense ratio of 1.40%. The SEBI risk category is Very High. Its asset allocation includes 98.30% in Equity and 1.70% in Cash & Equivalents.

Tata Dividend Yield Fund  

Tata Dividend Yield Fund is a Dividend Yield mutual fund scheme from Tata Mutual Fund. This fund has been operational for 2 years and 3 months, having been launched on May 20, 2021.

Tata Dividend Yield Fund falls under the Dividend Yield Fund category with an AUM of ₹1,037.66 crores, no 5-year CAGR, an exit load of 1% and an expense ratio of 0.45%. The SEBI risk category is Very High. Its asset allocation includes 96.13% in Equity, 3.52% in Cash & Equivalents, 0.33% in Mutual Funds and 0.02% in Rights.

Sundaram Dividend Yield Fund  

Sundaram Dividend Yield Fund is a Dividend Yield mutual fund scheme from Sundaram Mutual Fund. This fund has been operational for 11 years and 7 months, having been launched on January 2, 2013.

Sundaram Dividend Yield Fund falls under the Dividend Yield Fund category with an AUM of ₹976.95 crores, a 5-year CAGR of 25.20%, an exit load of 1% and an expense ratio of 0.96%. The SEBI risk category is Very High. Its asset allocation includes 94.00% in Equity, 2.34% in Cash & Equivalents, 2.80% in Mutual Funds and 0.86% in Rights.

LIC MF Dividend Yield Fund  

LIC MF Dividend Yield Fund is a Dividend Yield mutual fund scheme from LIC Mutual Fund. This fund has been operational for 4 years and 7 months, having been launched on December 21, 2018.

LIC MF Dividend Yield Fund falls under the Dividend Yield Fund category with an AUM of ₹330.46 crores, a 5-year CAGR of 27.82%, an exit load of 1% and an expense ratio of 1.45%. The SEBI risk category is Very High. Its asset allocation includes 95.56% in Equity and 4.44% in Cash & Equivalents.

What Are Dividend Yield Funds?

Dividend Yield Funds are mutual funds that primarily invest in stocks of companies with a history of paying high dividends relative to their share price. These funds aim to provide investors with a steady stream of income through dividends, along with potential capital appreciation.

Dividend Yield Funds typically focus on mature, well-established companies with stable cash flows and a consistent dividend payout track record. The dividend yield is calculated by dividing the annual dividend per share by the stock’s current price.

These funds can be attractive to income-seeking investors, retirees, or those looking for a more conservative equity investment option. They often provide a balance between income generation and moderate capital growth potential.

Features Of Top Performing Dividend Yield Funds in 10 Years

The main features of top-performing Dividend Yield Funds over 10 years include consistent dividend income, focus on high-yield stocks, potential for capital appreciation, lower volatility and emphasis on quality companies with strong financials.

• Consistent Income: These funds prioritize stocks with a history of stable and growing dividend payouts, providing regular income to investors.

• High-Yield Focus: Top-performing Dividend Yield Funds excel at identifying stocks with above-average dividend yields relative to the broader market.

• Capital Appreciation: While income is a primary focus, these funds also aim for moderate capital growth over the long term.

• Lower Volatility: Dividend-paying stocks tend to be less volatile, potentially providing more stability to the fund’s overall performance.

• Quality Companies: These funds often invest in well-established companies with strong balance sheets and consistent cash flows, which support sustainable dividend payments.

Best Performing Dividend Yield Funds in 10 Years

The table below shows the Best Performing Dividend Yield Funds in 10 Years Based on the lowest to highest expense ratio.

Top Performing Dividend Yield Funds in 10 Years In India

The table below shows the Top Performing Dividend Yield Funds in 10 Years In India Based on the Highest 3Y CAGR.

Top Performing Dividend Yield Funds in 10 Years

The table below shows Top Performing Dividend Yield Funds in 10 Years based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Factors To Consider When Investing In Top Performing Dividend Yield Funds in 10 Years

The main factors to consider when investing in top-performing Dividend Yield Funds over 10 years include dividend consistency, yield sustainability, fund performance, expense ratio, portfolio composition and alignment with your investment goals and income needs.

• Dividend Consistency: Evaluate the fund’s track record in delivering consistent dividend income over various market cycles.

• Yield Sustainability: Assess the sustainability of the high dividend yields, ensuring they are supported by strong company fundamentals and cash flows.

• Fund Performance: Analyze the fund’s total returns, including both dividend income and capital appreciation, compared to relevant benchmarks and peer funds.

• Expense Ratio: Consider the fund’s expense ratio, as lower fees can significantly impact long-term returns and income generation.

• Portfolio Composition: Examine the fund’s sector allocation and top holdings to ensure diversification and alignment with your risk tolerance.

How To Invest In Top Performing Dividend Yield Funds in 10 Years?

To invest in top-performing Dividend Yield Funds over 10 years, start by researching funds with consistent dividend payouts and strong long-term performance. Consider factors like expense ratios, fund manager expertise and dividend growth potential. Align the investment with your financial goals and income needs.

Choose between lump sum investments or Systematic Investment Plans (SIPs) based on your financial situation. SIPs can be particularly beneficial for averaging out the impact of market volatility over time.

Open an account with Alice Blue. Complete the necessary documentation, including KYC requirements and initiate your investment. Regularly review your portfolio, keeping an eye on the fund’s dividend payout consistency and overall performance.

Advantages Of Investing In Top Performing Dividend Yield Funds in 10 Years

The main advantages of investing in top-performing Dividend Yield Funds over 10 years include a steady income stream, potential for capital appreciation, lower volatility, inflation protection and exposure to quality companies with strong financials.

• Regular Income: These funds provide a steady stream of dividend income, which can be particularly attractive for retirees or income-focused investors.

• Capital Growth: While focusing on dividends, these funds also offer the potential for moderate capital appreciation over the long term.

• Lower Volatility: Dividend-paying stocks tend to be less volatile, potentially providing more stability to your investment portfolio.

• Inflation Hedge: Regular dividend payouts can help offset the impact of inflation on your investment returns.

• Quality Exposure: Dividend Yield Funds often invest in well-established companies with strong balance sheets and consistent cash flows.

Risks Of Investing In Top Performing Dividend Yield Funds in 10 Years

The main risks of investing in top-performing Dividend Yield Funds over 10 years include interest rate sensitivity, sector concentration, dividend sustainability concerns, potential for lower growth, and market risk.

• Interest Rate Sensitivity: Dividend Yield Funds may underperform when interest rates rise, as investors might prefer fixed-income securities for income.

• Sector Concentration: These funds may have higher exposure to certain sectors like utilities or financials, potentially increasing risk if these sectors underperform.

• Dividend Sustainability: Companies may reduce or eliminate dividends during economic downturns, impacting the fund’s income generation.

• Lower Growth Potential: Focus on high-yield stocks may result in lower capital appreciation compared to growth-oriented funds.

• Market Risk: Like all equity funds, Dividend Yield Funds are subject to market volatility and can experience fluctuations in value.

Importance of Dividend Yield Funds

The main importance of Dividend Yield Funds lies in their ability to provide regular income, offer a more conservative equity investment option, potentially lower portfolio volatility, provide exposure to quality companies and offer a balance between income and growth.

• Income Generation: These funds provide a steady stream of dividend income, which can be particularly valuable for retirees or income-focused investors.

• Conservative Equity Option: Dividend Yield Funds offer a more conservative approach to equity investing, suitable for risk-averse investors seeking equity exposure.

• Volatility Reduction: The focus on dividend-paying stocks can help reduce overall portfolio volatility.

• Quality Company Exposure: These funds typically invest in well-established companies with strong financials and consistent cash flows.

• Balanced Approach: Dividend Yield Funds offer a balance between income generation and potential for capital appreciation.

How Long to Stay Invested in Dividend Yield Funds?

Investors should generally stay invested in Dividend Yield Funds for at least 5-7 years to fully capitalize on their income generation potential and ride out short-term market volatility. This long-term approach allows for the compounding effect of reinvested dividends and potential capital appreciation.

A longer investment horizon helps smooth out market fluctuations and allows investors to benefit from the fund’s strategy of investing in companies with sustainable dividend policies. It also aligns with the typical investment horizon recommended for equity investments in general.

Tax Implications of Investing in Dividend Yield Funds

Investments in Dividend Yield Funds are subject to capital gains tax. For holdings less than one year, short-term capital gains are taxed at 15%. For holdings over one year, long-term capital gains up to ₹1 lakh per year are tax-free, while gains above this threshold are taxed at 10%.

Dividends received from Dividend Yield Funds are taxable in the hands of investors at their applicable income tax slab rates. It’s advisable to consult a tax professional for personalized advice based on your specific financial situation and the latest tax regulations.

Future of Dividend Yield Funds

The future of Dividend Yield Funds remains promising, especially in an environment of economic uncertainty and low interest rates. These funds are likely to continue attracting investors seeking regular income along with the potential for capital appreciation.

As markets evolve, Dividend Yield Funds may adapt their strategies to include a broader range of dividend-paying stocks, potentially including those from emerging sectors. However, the core focus on providing steady income through dividends is likely to remain a key feature of these funds.

Top Performing Dividend Yield Funds in 10 Years 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.