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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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Dividend Yield Mutual Funds List

Filters
logo ICICI Pru Dividend Yield Equity Fund - Direct Growth

31.97%

Fund Size - 4,783

Invest
logo Aditya Birla SL Dividend Yield Fund - Direct Growth

31.04%

Fund Size - 1,537

Invest
logo LIC MF Dividend Yield Fund - Direct Growth

42.58%

Fund Size - 464

Invest
logo HDFC Dividend Yield Fund - Direct Growth

26.67%

Fund Size - 6,140

Invest
logo Templeton India Equity Income Fund - Direct Growth

32.08%

Fund Size - 2,399

Invest
logo UTI-Dividend Yield Fund - Direct Growth

36.75%

Fund Size - 4,203

Invest
logo Tata Dividend Yield Fund - Direct Growth

23.12%

Fund Size - 986

Invest
logo Sundaram Dividend Yield Fund - Direct Growth

25.93%

Fund Size - 941

Invest
logo SBI Dividend Yield Fund - Direct Growth

27.49%

Fund Size - 9,556

Invest
logo Baroda BNP Paribas Dividend Yield Fund - Dir Growth

-

Fund Size - 1,040

Invest

Who Should Invest in Dividend Yield Funds?

Features of Dividend Yield Funds

Taxability of Dividend Yield Funds

Risk Involved with Dividend Yield Funds

Advantages of Dividend Yield Mutual Funds

Popular Dividend Yield Mutual Funds

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 4,783
  • 3Y Return
  • 26.43%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 1,537
  • 3Y Return
  • 23.87%

  • Min SIP Investment Amt
  • ₹ ₹ 200
  • AUM (Cr.)
  • ₹ 464
  • 3Y Return
  • 23.30%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 6,140
  • 3Y Return
  • 23.20%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 2,399
  • 3Y Return
  • 21.65%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 4,203
  • 3Y Return
  • 19.66%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 986
  • 3Y Return
  • 19.58%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 941
  • 3Y Return
  • 19.49%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 9,556
  • 3Y Return
  • -

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 1,040
  • 3Y Return
  • -

FAQs

Most fund houses select ‘High Dividend’ companies by comparing their dividends yield with a benchmark index like Sensex or Nifty 50. For example: If the dividend yield of Nifty 50 currently is near 1.25, a fund house would prefer investing in companies having a dividend yield higher than 1.25.

Most dividend yield funds invest about 75%-80% of their capital in high dividend-paying companies. The remaining corpus is invested in companies’ stocks with high returns potential in the future.

The trick here is to invest in companies with low dividend yields or no-dividend pay that would provide good returns if they are undervalued, provided their fundamentals are strong.

Dividend yield funds are generally stable and are a good investment for those looking for low volatile stocks. These funds are not recommended for aggressive growth-seekers, but they prove to be a good addition to most investment portfolios.

A reasonable dividend yield depends on the market conditions, but an average yield between 2% to 6% is considered ideal.

Mutual fund share prices fall after paying dividends because the money paid as dividends is extracted from the existing assets of the fund.

Dividend Yield funds focus on the dividend yield of stocks. They are appropriate for investors who are looking to invest in equity funds but with a low level of volatility in their investments. These funds are invested in companies that are generally stable and hence are best suited for the following groups of investors/individuals:

  • Low-risk appetite- Investors who do not prefer to take high risks and prefer to let go of better profits without exposing themselves to market risks.
  • Diversified portfolio- Those willing to have an all-around investment and assess risk on a large scale should invest in Dividend Yielding funds, thereby assisting the investor in having a diversified portfolio.
  • First-time investors- These funds provide minimal risk-investment routes for limited periods and are best for those investing for the first time in mutual funds.
  • Short-investment horizon- These funds generate high returns even in short time frames; hence it is a good investment for those who do not want to wait for long spells to gain returns from their investments.
  • Regular income- Investors who are hoping for a regular income from their investments, even though a low one, should consider investing in these funds.

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