Top dividend yield SIP mutual funds with up to 37% returns in 3 years; know Rs 10,000 monthly SIP's return value
Dividend yield mutual funds invest in firms that provide higher dividend yields compared to the average market level. Most dividend yield mutual funds invest in PSUs, blue chip, utilities, and realty firms.
Top dividend yield SIP mutual funds: When we talk about dividend yield, the first thought that strikes our minds is stock, as many investors seek profitable companies that give regular dividends. But there is a category of mutual funds that invest their money in companies that provide dividends. The category is known as dividend yield mutual funds. The fund manager in a dividend yield mutual fund scheme invests in firms that provide higher dividend yields compared to the average market level. Most dividend yield mutual funds invest in PSUs, blue chip, utilities, and realty firms. As per the Association of Mutual Funds in India (AMFI) classification of mutual funds, a dividend yield mutual fund invests 65 per cent of its money in equities. These funds are considered ideal for investors seeking regular income from their investments.
How does a dividend yield mutual fund work?
Unlike the growth option in a mutual fund, where profits generated are reinvested, in a dividend yield mutual fund, profits in the form of dividends are distributed among investors. So, the NAV growth in dividend yield mutual funds is slower than other equity funds providing growth options, but people pick them to get regular monthly income. Many of the dividend yield mutual funds have given over 30 per cent annualised SIP returns (XIRR) in the three years. Here is a list of the top 5 funds.
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ICICI Prudential Dividend Yield Equity Fund - Direct Plan - Growth
The fund at No. 1 has given 36.26 per cent annualised returns in the three years. It has assets under management (AUM) of Rs 3930.84 crore, while its net asset value (NAV) is worth Rs 54.27. Benchmarked against Nifty 500 TRI, the fund has an expense ratio of 0.56 per cent. The fund has 92.44 per cent of its investments in equities with 68.01 per cent of them in large stocks. In a portfolio of 57 stocks, the fund has ICICI Bank, NTPC, Sun Pharma, Maruti Suzuki, and HDFC Bank as its main stocks.
A Rs 10,000 monthly SIP in the fund in the three years has grown to Rs 6,00,937.90.
LIC MF Dividend Yield Fund - Direct Plan - Growth
The fund has given 35.31 per cent SIP returns in the three-year time frame. The fund has an AUM of Rs 189.29 crore, while its NAV is worth Rs 31.7779. Benchmarked against Nifty 500 TRI, the fund has an expense ratio of Rs 1.44 per cent. It has 93.95 per cent of its investments in equities. In a 57-stock portfolio, the fund's leading stocks are ICICI Bank, TCS, PFC, NTPC, and BEL.
A Rs 10,000 monthly SIP in the fund has turned into Rs 5,93,544.60.
Aditya Birla Sun Life Dividend Yield Fund - Direct Plan - Growth
The fund has given 33.79 per cent SIP returns in the three years. The fund has an AUM of Rs 1366.05 crore, while its NAV is worth Rs 490.11. The fund with Nifty 500 TRI as its benchmark has an expense ratio of 1.43 per cent. The fund has 91.84 per cent of its investments in equities with 40.07 per cent of them in large caps. In a 66-stock portfolio, the fund has Coal India, Infosys, NTPC, HDFC Bank, and Cms Info Systems as its main stocks.
A Rs 10,000 monthly SIP in the fund has given a total of Rs 5,82,127.50 in the three-year period.
HDFC Dividend Yield Fund - Direct Plan - Growth
The fund has had 33.37 per cent annualised SIP returns in the three years. It has an AUM of Rs 5,144.72 crore, while its NAV rate is Rs 26.269. Benchmarked against Nifty 500 TRI, the fund has an expense ratio of 0.58 per cent. It has 97.42 per cent of its investments in equities with 55.41 per cent of them in large caps. In a large 91-stock portfolio, the fund has HDFC Bank, ICICI Bank, Larsen & Toubro, NTPC, and RIL as its main stocks.
A Rs 10,000 monthly SIP in the fund has tuned into Rs 5,78,664.10 in the three years.
Tata Dividend Yield Fund - Direct Plan - Growth
The fund has given 31.08 per cent annualised SIP returns in the three-year period. The fund has an AUM of Rs 927.04 crore, while its NAV is worth Rs 19.4026. The fund has 96.51 per cent of its investments in equities with 37.76 per cent of them in large caps. In a portfolio of 64 stocks, the fund has BEL, HDFC Bank, ICICI Bank, Larsen & Toubro, and Power Grid as its main stocks.
A Rs 10,000 monthly SIP in the fund has given a total of Rs 5,61,366.30 in the three years.