Invest in the Dividend Yield funds recommended by Scripbox that are scientifically and algorithmically selected that best suit your needs.
Learn how Scripbox Recommends funds| Fund Name | 3Y Returns | Expense Ratio |
|---|---|---|
 | 25.2% | 0.52% |
 | 22.2% | 1.37% |
 | 20.6% | 1.20% |
 | 22.3% | 1.45% |
 | 18.4% | 1.40% |
 | NA | 0.42% |
 | NA | 0.74% |
 | 18.3% | 0.94% |
 | 22.1% | 0.60% |
 | 18.1% | 0.56% |
Note : *NA implies that Fund is relatively new. Not enough data available
Invest in these funds with automated best practices like quarterly scans, updates & tax-optimised withdrawals
Below are the dividend yield funds in india:
ICICI Prudential Dividend Yield Equity Fund Direct (G) is a Equity fund that has delivered a 1 Year return of 23.6%, a 3 Years return of 25.2% and a 5 Years return of 26.9%. The fund has an expense ratio of 0.5% and an AUM of ₹4783 crores as of 2024-12-30. It was Launched on 2014-05-16. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 94.70% to equities, 1.17% to debt and 2.90% to other assets.
Aditya Birla Sun Life Dividend Yield Fund Direct (G) is a Equity fund that has delivered a 1 Year return of 20.2%, a 3 Years return of 22.2% and a 5 Years return of 23.5%. The fund has an expense ratio of 1.4% and an AUM of ₹1537 crores as of 2024-12-30.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 99.43% to equities and 0.57% to other assets.
Templeton India Equity Income Fund Direct (G) is a Equity fund that has delivered a 1 Year return of 22.9%, a 3 Years return of 20.6% and a 5 Years return of 25.5%. The fund has an expense ratio of 1.2% and an AUM of ₹2399 crores as of 2024-12-30.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 88.90% to equities and 4.56% to other assets.
LIC MF Dividend Yield Fund Direct (G) is a Equity fund that has delivered a 1 Year return of 34.8%, a 3 Years return of 22.3% and a 5 Years return of 24.2%. The fund has an expense ratio of 1.4% and an AUM of ₹464 crores as of 2024-12-30. It was Launched on 2018-12-21. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 99.01% to equities and 0.99% to other assets.
UTI Dividend Yield Fund Direct (G) is a Equity fund that has delivered a 1 Year return of 27.0%, a 3 Years return of 18.4% and a 5 Years return of 22.1%. The fund has an expense ratio of 1.4% and an AUM of ₹4203 crores as of 2024-12-30.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 94.43% to equities, 0.23% to debt and 5.34% to other assets.
Baroda BNP Paribas Dividend Yield Fund Direct (G) is a Equity fund. The fund has an expense ratio of 0.4% and an AUM of ₹1040 crores as of 2024-12-30. It was Launched on 2024-09-11. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 85.00% to equities, 46.39% to debt and -31.39% to other assets.
SBI Dividend Yield Fund Direct (G) is a Equity fund that has delivered a 1 Year return of 17.3%. The fund has an expense ratio of 0.7% and an AUM of ₹9556 crores as of 2024-12-30. It was Launched on 2023-03-14. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 90.74% to equities and 3.78% to other assets.
Sundaram Dividend Yield Fund Direct (G) is a Equity fund that has delivered a 1 Year return of 18.4%, a 3 Years return of 18.3% and a 5 Years return of 21.1%. The fund has an expense ratio of 0.9% and an AUM of ₹941 crores as of 2024-12-30. It was Launched on 2013-01-02. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 94.72% to equities, 2.96% to debt and 2.32% to other assets.
HDFC Dividend Yield Fund Direct (G) is a Equity fund that has delivered a 1 Year return of 18.9% and a 3 Years return of 22.1%. The fund has an expense ratio of 0.6% and an AUM of ₹6140 crores as of 2024-12-30. It was Launched on 2020-12-18. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 98.48% to equities and 0.71% to other assets.
Tata Dividend Yield Fund Direct (G) is a Equity fund that has delivered a 1 Year return of 14.6% and a 3 Years return of 18.1%. The fund has an expense ratio of 0.6% and an AUM of ₹986 crores as of 2024-12-30. It was Launched on 2021-05-20. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 97.76% to equities, 0.35% to debt and 1.89% to other assets.
| Fund Name | 3 Year Returns | 5 Year Returns |
| ICICI Prudential Dividend Yield Equity Fund Direct (G) | 24.5% | 27% |
| Templeton India Equity Income Fund Direct (G) | 19.2% | 25.6% |
| UTI Dividend Yield Fund Direct (G) | 17.2% | 22.1% |
| Aditya Birla Sun Life Dividend Yield Fund Direct (G) | 21% | 23.7% |
| Sundaram Dividend Yield Fund Direct (G) | 17% | 20.8% |
| Fund Name | 3 Year Returns | 5 Year Returns |
| HDFC Dividend Yield Fund Regular (G) | 20.9% | NA |
| UTI Dividend Yield Fund Regular (G) | 18.5% | 21.9% |
| LIC MF Dividend Yield Fund Regular (G) | 21.4% | 23.6% |
| ICICI Prudential Dividend Yield Equity Fund Regular (G) | 24.3% | 26.2% |
| Tata Dividend Yield Fund Regular (G) | 17% | NA |
A dividend is a part of the profit which the company shares with its shareholders. These mutual funds are open ended funds that invest in shares/stocks of companies that pay high dividends. However, a company can pay dividends only if it makes good profits, and therefore, most of these companies have a good track record of profit-making.
As per SEBI guidelines, a dividend yield fund must invest a minimum of 65% of its assets in dividend-yielding stocks. Thus, this acts as a filter for fund managers while selecting stocks. They select companies that can afford to pay high dividends with a proven track record. Besides this, the fund manager also looks for growth prospects and other fundamentals before investing. Investors looking for regular income, even if it is low, should consider investing in these funds.
Dividend yield funds are of two types –
Dividend yield funds are suitable for investors who are looking to earn regular income from their investments. The dividend from these mutual funds may not be very significant, but they cannot be ignored. Also, dividend payout cannot be guaranteed and same each time. It is entirely dependent on the performance of the underlying companies and market movements.
Investors with low-risk tolerance levels can prefer to invest in dividend yield funds. These investors look for stable returns. Also, during the bear market phase, the underlying companies of this fund can provide some dividend payout. Moreover, for retired investors, this fund can act as an income tool. Besides this, it helps investors to diversify their portfolios.
The following are the things that the investor must consider before investing in a dividend yield fund.
Besides the above parameters, investors should also consider the Sharpe ratio, Treynor’s ratio, standard deviation, alpha, beta, etc. Some investors lack time and knowledge to do their research. Thus, they can always consult a financial advisor to guide them in their investments. Financial advisors are experts to help investors plan their investments adequately based on their financial objectives.
To sum up, dividend yield funds can be a good way for capital appreciation and earning dividends in the investment portfolio. While investing in these funds, it is crucial to consider the fund size and historical performance. Investors should avoid making decisions on recent or current performance. Also, diversification plays a vital role in building a portfolio, and investors must make intelligent decisions to create wealth for their future.