Equity funds that allocate a minimum of 65% of their total assets to dividend-paying companies’ stocks are known as dividend yield mutual funds. Regular dividend-paying stocks of prosperous corporations are often the investments made by high-dividend mutual funds. The Best dividend yield mutual funds in India are listed below which we have carefully chosen. Let’s get started!
8 Top Dividend Yield Mutual Funds In India
Here are the Top dividend yield mutual funds in 2023 in India that you can invest:
|Mutual Fund Scheme Name
|ICICI Prudential Dividend Yield Equity Fund – Direct Plan-Growth
Expense Ratio: 0.65%
|UTI Dividend Yield Fund – Direct Plan-Growth
Expense Ratio: 2.08%
AUM: ₹2786.59 Crore
|IDBI Dividend Yield Fund – Direct Plan-Growth
Expense Ratio: 2.51%
|Templeton India Equity Income Fund – Direct-Growth
Expense Ratio: 2.26%
AUM: ₹1350.66 Crore
|Sundaram Dividend Yield Fund – Direct Plan-Growth
Expense Ratio: 2.54%
AUM: ₹382.67 Crore
|Aditya Birla Sun Life Dividend Yield Fund – Direct Plan-Growth
|NAV: ₹ 268.79
Expense Ratio: 2.43
|HDFC Dividend Yield Fund – Direct Plan-Growth
Expense Ratio: 2.01%
|Tata Dividend Yield Fund – Direct Plan-Growth
Expense Ratio: 2.69%
Performance Of Top Dividend Yield Mutual Funds 2023
The Best dividend yield mutual funds listed above are broken down into the following detailed summary:
- ICICI Prudential Dividend Yield Equity Fund – Direct Plan–Growth: On May 16, 2014, ICICI Prudential Dividend Yield Equity Fund program was introduced. The current fund managers for this scheme are Sharmila D’mello and Mittul Kalawadia. 88.37% of the assets in this portfolio are allocated to domestic stocks of various market capitalizations. If you want to invest in this mutual fund plan, you have to be ready to accept market-driven losses ranging from moderate to enormous. As a result, you must be an experienced investor with a high tolerance for risk. It is among the Best dividend-yield mutual funds as well.
- UTI Dividend Yield Fund – Direct Plan–Growth: On January 1, 2013, UTI Dividend Yield fund was established. This scheme’s fund manager at the moment is Amit Premchandani. The majority of its holdings, 97.53%, are in domestic stocks of businesses that frequently declare their dividend payouts. This investment is spread across several industries and market capitalizations. When selling funds under this scheme within a year, there will be a 1% exit load.
- IDBI Dividend Yield Fund – Direct Plan–Growth: On December 21, 2018, IDBI Dividend Yield Fund was introduced. Currently, this scheme’s fund manager is Alok Ranjan. Ninety-seven. 42 percent of the assets in this dividend-paying mutual fund are in domestic stocks. A total of 59.1% is allocated to large-cap equities, 18.99% to mid-cap companies, and 16.78% to small-cap stocks. It invests in businesses that consistently pay dividends in an effort to generate long-term capital gains for its backers.
- Templeton India Equity Income Fund – Direct–Growth: In domestic stocks of various market capitalizations, Templeton India Equity Income Fund invests 75.83% of its total assets. With investments in stocks and equity-related securities of firms that pay regular dividends, it seeks to provide a proportionate combination of regular and long-term capital growth. To invest in this market, one must be well-versed in it and have a strong tolerance for risk. January 1, 2013, saw the launch of this fund. Fund managers for this scheme are Rajasa Kakulavarapu, Anand Radhakrishnan, and Mayank Bukrediwala.
- Sundaram Dividend Yield Fund – Direct Plan – Growth: On January 1, 2013, the Sundaram Dividend Yield Fund was made available to investors. Currently serving as this scheme’s fund manager is Ravi Gopalakrishnan. 92.25% of the funds invested in this scheme are placed in domestic stocks of businesses with strong dividend yields relative to their market capitalization. High dividend yield companies are those that offer 1.5 times the NSE Nifty’s dividend yield, according to the program.
- Aditya Birla Sun Life Dividend Yield Fund – Direct Plan – Growth: The system for Aditya Birla Sun Life Dividend Yield Fund was introduced on January 1, 2013. Large, mid, and small-cap stocks comprise 92.25% of its interests in domestic equities. By making investments in a well-diversified portfolio, it seeks to achieve both capital growth and consistent dividend income. But only experienced investors who are well-versed in this market’s patterns ought to take the chance of making an investment here. Losses from this approach could range from moderate to significant.
- HDFC Dividend Yield Fund – Direct Plan-Growth: On December 14, 2020, this program was introduced. The fund managers of the HDFC Dividend Yield Fund are Gopal Agarwal and Priya Ranjan. Its investment in domestic large, mid, and small-size stocks amounts to 99.93%. By investing in stocks and equity-related securities of companies that regularly pay dividends, this scheme seeks to create both dividends and capital appreciation.
- Tata Dividend Yield Fund – Direct Plan–Growth: The launch date of this Tata dividend yield fund plan is May 20, 2021. Its fund managers are Murthy Nagaranjan, Arvindkumar Kumaresan Chetty, and Sailesh Jain. Large, mid, and small-cap domestic stocks account for 97.74% of the fund’s total assets. By putting money into a diverse portfolio that includes stocks of companies that pay out large and consistent dividends, it also seeks to promote capital growth. Additionally, selling the funds before a year is subject to a 1% exit load.
Features of Dividend Yield Funds
Among dividend yield mutual funds’ key attributes are the following:
- Asset Allocation: This fund must allocate at least 65% of its assets, as per SEBI guidelines, to equity and equity-based securities.
- Risk-Reward Ratio: Typically, stocks are handled by these funds. Variations in the market have an impact on their performance. However, compared to most other equity mutual funds, these schemes are less volatile because they invest in the equities of the top companies.
- Regular Source of Income: By investing in equities, dividend-paying mutual funds provide a reliable stream of income. You can purchase additional mutual fund units with the earnings.
Benefits of Dividend Yield Mutual Funds
The following are the key benefits of buying dividend-yield mutual funds:
- There is a chance that Mutual funds with dividend yields will pay out on a consistent basis.
- First-time equities investors might consider dividend-yield mutual funds.
- Market volatility is significantly decreased by dividend yield mutual funds.
- Dividend Yield Mutual Funds possess the capacity to eventually yield larger payouts.
- The underlying companies are mostly unaffected by changes in the market.
Who Can Invest in Dividend Yield Mutual Funds?
- Dividend yield mutual funds are accessible to novice stock investors.
- investors trying to get a consistent dividend.
- Ideal for investors who are risk-averse.
- Retiree investors seeking a reliable stream of income after retirement.
How to Invest in Dividend Yield Mutual Funds?
These are the fundamental actions you should take in order to invest in mutual funds with the highest dividend yields.
- Step 1: Investigate dividend yield mutual funds in-depth, taking into account their track record, degree of risk, expense ratio, etc.
- Step 2: Your investment goals and risk tolerance will determine which mutual fund you should invest in, so make a shortlist and make your selection.
- Step 3: Verify that the mutual fund schemes you have shortlisted are registered with AMFI before proceeding. The distributor’s AMFI Registration Number (ARN) can be used to verify this.
- Step 4: To make a direct investment in the mutual funds of your choice, go to the branch office or use the online portal.
- Step 5: A high-dividend mutual fund can also be purchased by going to a branch office of an intermediary, such as a bank or an NBFC.
The Best dividend yield mutual funds for 2023 have all the information you need to start investing, right here on this blog. The equities of businesses with the potential to pay out on a regular basis are purchased by fund managers. Mutual funds with a dividend yield seem complicated. Begin investing with a Mutual Fund for as little as Rs. 10 for each SIP!