Dividend Yield Mutual Funds

Dividend Yield Funds invest at least 65% of their portfolio in equities such that the stocks reward shareholders with high and consistent dividend payouts, bonus shares or share buybacks. These funds can have a value tilt, they can be a blend of growth and value, or they may be growth-oriented. View More

The aim of these funds is to provide medium to long term gains and/or dividend distribution by investing in equity and equity-related instruments of dividend-yielding companies. Dividend Yield Funds with a value tilt invest mainly in stocks that are undervalued and are trading at a market price that is lower than their intrinsic value.

However, the companies that the funds invest in have strong fundamentals, so the market will eventually realise their actual value.

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List of Dividend Yield Mutual Funds

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Who Should Invest in Dividend Yield Funds?

  • Dividend Yield Funds are good for investors who want a regular income in the form of dividends since the mutual funds pass on the dividends from the companies to the investors. Although Dividend Yield Funds can invest across market capitalisation and sectors, most of these funds invest at least 50% of their assets in large cap companies that are mature and have a healthy cash flow in order to pay dividends.

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  • Dividend Yield Funds are best for moderate risk takers since these funds are relatively less risky as compared to small cap, mid cap and growth-oriented funds. So, during a downturn, they tend to fall less than the aforementioned funds. Investors who don’t want to be affected by volatility can invest in Dividend Yield Funds since the companies the funds invest in are generally capital intensive businesses that are less volatile.
  • Investors who are not confident about picking out dividend yielding stocks on their own can opt for the mutual fund route.
  • The funds provide a high return on investment in the long run. Hence, they are suitable for investors who want to stay invested for at least 5 years.
  • These funds are good for investors who want to avoid a steep tax on dividends. When you invest in stocks that pay dividends, the dividends from stocks are taxed in the hands of the investors at a high marginal tax rate. In the case of the dividend yield funds, the dividends are taxed at a much lower rate.

Popular Dividend Yield Mutual Funds

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 6,400
  • 3Y Return
  • 24.73%

  • Min SIP Investment Amt
  • ₹ 200
  • AUM (Cr.)
  • ₹ 689
  • 3Y Return
  • 21.98%

  • Min SIP Investment Amt
  • ₹ 500
  • AUM (Cr.)
  • ₹ 3,946
  • 3Y Return
  • 21.43%

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 1,023
  • 3Y Return
  • 19.73%

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 1,511
  • 3Y Return
  • 19.66%

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 6,105
  • 3Y Return
  • 19.13%

  • Min SIP Investment Amt
  • ₹ 500
  • AUM (Cr.)
  • ₹ 2,402
  • 3Y Return
  • 18.36%

  • Min SIP Investment Amt
  • ₹ 500
  • AUM (Cr.)
  • ₹ 919
  • 3Y Return
  • 18.12%

  • Min SIP Investment Amt
  • ₹ 500
  • AUM (Cr.)
  • ₹ 9,102
  • 3Y Return
  • -

  • Min SIP Investment Amt
  • ₹ 500
  • AUM (Cr.)
  • ₹ 779
  • 3Y Return
  • -

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