Dividend yield mutual funds: These 7 schemes turned Rs 1 lakh into more than Rs 1,46,300 in 1 year; data may leave you surprised
Dividend yield mutual fund schemes: Did you know that seven dividend yield equity mutual fund (direct) schemes have turned an investment of Rs 1 lakh into more than Rs 1.46 lakh in just a year's time? The top two MF schemes in this category, the ICICI Prudential Dividend Yield Equity and the LIC MF Dividend Yield Fund, rewarded investors with returns of 55-57 per cent during this period. Read on to know more and see the complete list.
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Dividend yield mutual fund schemes: Ever wondered what kind of returns can you expect from a dividend yield mutual fund scheme? Here's a list of seven hybrid MF schemes that turned Rs 1 lakh invested on April 10, 2023, into at least Rs 1,46,300 on April 10, 2024, beating their benchmark—the NIFTY 500 Total Return Index—by a wide margin, according to data from the Association of Mutual Funds in India (AMFI). Out of the seven schemes, the top two delivered returns to the tune of 55-57 per cent, which means that a lump sum investment of Rs 1,00,000 a year ago grew to Rs 1,55,000-1,57,000, the data shows.
Here's the list of the top open-ended dividend yield MF schemes, as of April 10:
| MF scheme | Benchmark | Riskometer | Return-Direct (%) | ||
| Fund | Benchmark | ||||
|
|
NIFTY 500 Total Return Index | Very High | 57.45 | 42.78 | |
| LIC MF Dividend Yield Fund | NIFTY 500 Total Return Index | Very High | 54.67 | 42.78 | |
| Aditya Birla Sun Life Dividend Yield Fund | NIFTY 500 Total Return Index | Very High | 54.06 | 42.78 | |
| HDFC Dividend Yield Fund | NIFTY 500 Total Return Index | Very High | 49.21 | 42.78 | |
| Tata Dividend Yield Fund | NIFTY 500 Total Return Index | Very High | 49.01 | 42.78 | |
| Sundaram Dividend Yield Fund | NIFTY 500 Total Return Index | Very High | 48.15 | 42.78 | |
| Templeton India Equity Income Fund | NIFTY 500 Total Return Index | Very High | 46.33 | 42.78 | |
Source: amfiindia.com
To put things into perspective, here's what a lump sum investment of Rs 1,00,000 in some of these schemes a year ago would have grown into, as of April 10, 2024:
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ICICI Prudential Dividend Yield Equity Fund: Rs 1,57,450
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LIC MF Dividend Yield Fund: Rs 1,54,670
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Tata Dividend Yield Fund: Rs 1,49,010
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HDFC Dividend Yield Fund: Rs 1,49,210
What are dividend yield equity funds?
Dividend yield mutual funds are investment funds that focus on generating income through dividends. These funds invest in dividend-paying stocks, providing investors with a regular income stream, and essentially offering a balance between income generation and capital appreciation. This is what makes them a popular choice for those looking to build wealth over the long term.
By holding a diversified portfolio of dividend-paying companies, these funds offer stability and potential growth.
Investors benefit from both capital appreciation and dividend payouts.
Dividend yield mutual funds are suitable for income-oriented investors seeking steady returns.
Meanwhile, inflows into dividend yield equity mutual fund schemes increased 3.4 times to Rs 322.5 crore in March, according to AMFI data. Read more on latest AMFI data here
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