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Table of Contents
- What are Dividend Yield Funds?
- Top 5 Best Dividend Yield Funds to Invest in FY 21 - 22
- Why Should you Invest in Dividend Yield Mutual Funds?
- How to Invest in Dividend Yield Mutual Funds Online?
- FAQs
- 1. What are the SEBI guidelines for dividend funds?
- 2. What should I know before investing in dividend funds?
- 3. Who is best suited to invest in dividend funds?
- 4. Why should I invest in UTI Dividend Yield Fund?
- 5. What is the Principal Dividend Yield Fund?
- 6. Can I invest in dividend funds online?
- 7. Why should I invest in dividend funds?
Top 5 Equity - Dividend Yield Funds
5 Best Dividend Yield Funds to Invest in 2021
When spoken about dividend yield funds, many investors at first glance think that these funds pay good dividends. But, that’s not these funds stand for. These funds are a part of equity Mutual Funds that invest their major portion of the corpus in dividend yielding stocks. In other words, these funds invest in companies that pay an above-average dividend regularly. As per SEBI norms, the dividend yield fund schemes should invest a minimum 65 percent of its assets in equities, but in dividend yielding stocks.
What are Dividend Yield Funds?
The fund manager of the dividend yield fund tends to invest in companies that have constant cash flows and are in a position to pay dividend regularly and at a stable rate. During a downturn, such companies don’t usually reduce its dividend.
Therefore, such investments make the funds less volatile compared with their growth-oriented peers. The volatility of these funds, on an average, is lower than both large-cap and multi-cap funds.
A dividend yield fund invests its corpus in stocks that have a dividend yield higher than the average dividend yield of the Market. One can say it can be higher than the Nifty 50 or the Sensex. The remaining portion of the fund; that’s 35 percent of the portfolio can be invested in any stock.
If looked at its drawbacks, dividend yield funds likely Underperform the growth funds in the rising market. Ideally, these funds are suitable for conservative investors who want to invest in Equity Funds. Dividend yield funds are less volatile and tend to give good risk-adjusted returns over the long-run.
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Top 5 Best Dividend Yield Funds to Invest in FY 21 - 22
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2020 (%) Templeton India Equity Income Fund Growth ₹73.7626
↓ -0.26 ₹1,142 14.5 27.9 72.5 15.3 15.4 22.9 UTI Dividend Yield Fund Growth ₹98.4683
↓ -0.28 ₹2,932 16.3 24.3 51.2 15.2 14.8 18.9 Principal Dividend Yield Fund Growth ₹79.52
↓ -0.22 ₹218 11.1 19.8 49.5 14.2 16.1 20.2 Aditya Birla Sun Life Dividend Yield Fund Growth ₹241.07
↓ -0.30 ₹834 19.2 29.4 55.1 12.1 11.2 16.1 ICICI Prudential Dividend Yield Equity Fund Growth ₹23.41 ₹359 17.8 28.9 61.3 11 12.2 14.1 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 27 Jul 21 Assets >= 100 Crore & Sorted on 3 Year CAGR Returns.
Why Should you Invest in Dividend Yield Mutual Funds?
A dividend yield strategy is a tool to identify value stocks. As said earlier, the fund manager of these funds tends to invest in firms that have stable cash flows. Usually, these funds have a history of paying high dividends and also sound fundamentals. These companies tend to manage good deliveries across business and economic cycles and exhibit minimal volatility, especially in bear markets. Investors who are planning to invest in dividend yield funds should look at the dividend pay-out history of the fund and see if it has paid dividends consistently.
An Open-end diversified equity fund that seek to provide a combination of regular income and long term capital appreciation by investing primarily in stocks that have a current on potentially attractive dividend yield. Templeton India Equity Income Fund is a Equity - Dividend Yield fund was launched on 18 May 06. It is a fund with Moderately High risk and has given a Below is the key information for Templeton India Equity Income Fund Returns up to 1 year are on (Erstwhile UTI - Dividend Yield Fund) The investment objective of the scheme is to provide medium to long term capital gains and/ or dividend distribution by investing predominantly in equity and equity related instruments which offer high dividend yield. There can be no assurance that the investment objectives of the scheme will be realised. UTI Dividend Yield Fund is a Equity - Dividend Yield fund was launched on 3 May 05. It is a fund with Moderately High risk and has given a Below is the key information for UTI Dividend Yield Fund Returns up to 1 year are on The investment objective of the scheme would be to provide capital appreciation and/or dividend distribution by investing predominantly in a well-diversified portfolio of companies that have a relatively high dividend yield. Principal Dividend Yield Fund is a Equity - Dividend Yield fund was launched on 15 Oct 04. It is a fund with Moderately High risk and has given a Below is the key information for Principal Dividend Yield Fund Returns up to 1 year are on (Erstwhile Aditya Birla Sun Life Dividend Yield Plus) An Open-ended growth scheme with the objective to provide capital growth and income by investing primarily in a well-diversified portfolio of dividend paying companies that have a relatively high dividend yield. Aditya Birla Sun Life Dividend Yield Fund is a Equity - Dividend Yield fund was launched on 26 Feb 03. It is a fund with Moderately High risk and has given a Below is the key information for Aditya Birla Sun Life Dividend Yield Fund Returns up to 1 year are on The investment objective of ICICI Prudential Dividend Yield Equity Fund is to provide medium to long term capital gains and/or dividend distribution by investing in a well diversified portfolio of predominantly equity and equity related instruments, which offer attractive dividend yield ICICI Prudential Dividend Yield Equity Fund is a Equity - Dividend Yield fund was launched on 16 May 14. It is a fund with Moderately High risk and has given a Below is the key information for ICICI Prudential Dividend Yield Equity Fund Returns up to 1 year are on 1. Templeton India Equity Income Fund
CAGR/Annualized return of 14.1% since its launch. Ranked 46 in Dividend Yield category. Return for 2020 was 22.9% , 2019 was 5.3% and 2018 was -8.6% . Templeton India Equity Income Fund
Growth Launch Date 18 May 06 NAV (27 Jul 21) ₹73.7626 ↓ -0.26 (-0.35 %) Net Assets (Cr) ₹1,142 on 30 Jun 21 Category Equity - Dividend Yield AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 2.38 Sharpe Ratio 4.71 Information Ratio 0.62 Alpha Ratio 26.2 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Jun 16 ₹10,000 30 Jun 17 ₹12,207 30 Jun 18 ₹13,553 30 Jun 19 ₹13,618 30 Jun 20 ₹11,947 30 Jun 21 ₹21,532 Returns for Templeton India Equity Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jul 21 Duration Returns 1 Month 1% 3 Month 14.5% 6 Month 27.9% 1 Year 72.5% 3 Year 15.3% 5 Year 15.4% 10 Year 15 Year Since launch 14.1% Historical performance (Yearly) on absolute basis
Year Returns 2020 22.9% 2019 5.3% 2018 -8.6% 2017 34.1% 2016 9.4% 2015 -1.6% 2014 38.5% 2013 3.7% 2012 36.1% 2011 -23.7% Fund Manager information for Templeton India Equity Income Fund
Name Since Tenure Anand Radhakrishnan 1 Jan 19 2.5 Yr. Lakshmikanth Reddy 1 Jan 19 2.5 Yr. Mayank Bukrediwala 24 Aug 20 0.85 Yr. Data below for Templeton India Equity Income Fund as on 30 Jun 21
Equity Sector Allocation
Sector Value Technology 23.12% Utility 20.49% Consumer Cyclical 11.2% Consumer Defensive 8.63% Industrials 7.33% Real Estate 7.28% Energy 5.76% Basic Materials 5.17% Financial Services 1.15% Health Care 0.95% Asset Allocation
Asset Class Value Cash 8.91% Equity 91.09% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Apr 13 | INFY11% ₹123 Cr 775,444 Power Grid Corp Of India Ltd (Utilities)
Equity, Since 31 Jan 19 | 5328986% ₹70 Cr 3,009,054 Embassy Office Parks REIT (Real Estate)
-, Since 31 Oct 19 | 5426025% ₹52 Cr 1,483,400
↑ 250,000 Tata Power Co Ltd (Utilities)
Equity, Since 30 Jun 19 | 5004004% ₹50 Cr 4,085,759
↓ -562,107 Finolex Industries Ltd Shs Dematerialised (Industrials)
Equity, Since 31 Jan 19 | FINPIPE3% ₹39 Cr 2,098,785 NTPC Ltd (Utilities)
Equity, Since 31 Jan 19 | 5325553% ₹38 Cr 3,291,938 Unilever PLC ADR (Consumer Defensive)
Equity, Since 31 Dec 19 | UL3% ₹38 Cr 86,900 NHPC Ltd (Utilities)
Equity, Since 31 Mar 20 | 5330983% ₹38 Cr 14,497,327 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Oct 20 | 5006963% ₹34 Cr 138,206 Redington (India) Ltd (Technology)
Equity, Since 30 Jun 16 | 5328053% ₹33 Cr 1,230,352 2. UTI Dividend Yield Fund
CAGR/Annualized return of 15.1% since its launch. Ranked 75 in Dividend Yield category. Return for 2020 was 18.9% , 2019 was 3.3% and 2018 was 0.5% . UTI Dividend Yield Fund
Growth Launch Date 3 May 05 NAV (27 Jul 21) ₹98.4683 ↓ -0.28 (-0.28 %) Net Assets (Cr) ₹2,932 on 30 Jun 21 Category Equity - Dividend Yield AMC UTI Asset Management Company Ltd Rating ☆ Risk Moderately High Expense Ratio 2.16 Sharpe Ratio 3.61 Information Ratio 1.03 Alpha Ratio 8.71 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Jun 16 ₹10,000 30 Jun 17 ₹11,850 30 Jun 18 ₹12,862 30 Jun 19 ₹13,487 30 Jun 20 ₹12,490 30 Jun 21 ₹19,888 Returns for UTI Dividend Yield Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jul 21 Duration Returns 1 Month 2.9% 3 Month 16.3% 6 Month 24.3% 1 Year 51.2% 3 Year 15.2% 5 Year 14.8% 10 Year 15 Year Since launch 15.1% Historical performance (Yearly) on absolute basis
Year Returns 2020 18.9% 2019 3.3% 2018 0.5% 2017 28.5% 2016 6.1% 2015 -5.1% 2014 41.2% 2013 0.2% 2012 22.4% 2011 -17.5% Fund Manager information for UTI Dividend Yield Fund
Name Since Tenure Swati Kulkarni 1 Dec 05 15.59 Yr. Data below for UTI Dividend Yield Fund as on 30 Jun 21
Equity Sector Allocation
Sector Value Technology 29.62% Consumer Defensive 15.91% Basic Materials 12.46% Financial Services 10.55% Energy 8.14% Utility 7.36% Industrials 6.59% Health Care 5.44% Consumer Cyclical 2.88% Asset Allocation
Asset Class Value Cash 1.03% Equity 98.96% Other 0.02% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Apr 08 | INFY10% ₹279 Cr 1,766,000 Tech Mahindra Ltd (Technology)
Equity, Since 31 May 17 | 5327557% ₹193 Cr 1,760,000 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 30 Apr 20 | 5006966% ₹173 Cr 699,327 ITC Ltd (Consumer Defensive)
Equity, Since 30 Nov 07 | ITC5% ₹160 Cr 7,893,000 Mphasis Ltd (Technology)
Equity, Since 31 Mar 14 | 5262995% ₹156 Cr 729,000 Tata Steel Ltd (Basic Materials)
Equity, Since 31 Aug 19 | TATASTEEL5% ₹143 Cr 1,224,000
↓ -126,000 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 08 | TCS4% ₹114 Cr 342,000 NTPC Ltd (Utilities)
Equity, Since 31 Jul 05 | 5325554% ₹112 Cr 9,650,353 Bharat Petroleum Corp Ltd (Energy)
Equity, Since 30 Jun 09 | 5005473% ₹98 Cr 2,099,826 Larsen & Toubro Infotech Ltd (Technology)
Equity, Since 30 Jun 19 | 5400053% ₹88 Cr 216,000 3. Principal Dividend Yield Fund
CAGR/Annualized return of 13.2% since its launch. Ranked 37 in Dividend Yield category. Return for 2020 was 20.2% , 2019 was 4.4% and 2018 was -5.2% . Principal Dividend Yield Fund
Growth Launch Date 15 Oct 04 NAV (27 Jul 21) ₹79.52 ↓ -0.22 (-0.28 %) Net Assets (Cr) ₹218 on 30 Jun 21 Category Equity - Dividend Yield AMC Principal Pnb Asset Mgmt. Co. Priv. Ltd. Rating ☆☆☆ Risk Moderately High Expense Ratio 2.57 Sharpe Ratio 4.01 Information Ratio 0.53 Alpha Ratio 11.49 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Jun 16 ₹10,000 30 Jun 17 ₹12,690 30 Jun 18 ₹14,397 30 Jun 19 ₹14,849 30 Jun 20 ₹13,975 30 Jun 21 ₹21,841 Returns for Principal Dividend Yield Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jul 21 Duration Returns 1 Month 1.5% 3 Month 11.1% 6 Month 19.8% 1 Year 49.5% 3 Year 14.2% 5 Year 16.1% 10 Year 15 Year Since launch 13.2% Historical performance (Yearly) on absolute basis
Year Returns 2020 20.2% 2019 4.4% 2018 -5.2% 2017 46.6% 2016 7.2% 2015 -3.4% 2014 44.9% 2013 -5.3% 2012 41.9% 2011 -26.8% Fund Manager information for Principal Dividend Yield Fund
Name Since Tenure Ravi Gopalakrishnan 11 Oct 19 1.72 Yr. Data below for Principal Dividend Yield Fund as on 30 Jun 21
Equity Sector Allocation
Sector Value Basic Materials 24.37% Technology 18.73% Financial Services 13.63% Consumer Defensive 11.71% Consumer Cyclical 10.21% Energy 7.42% Utility 5.96% Industrials 3.83% Communication Services 2.16% Asset Allocation
Asset Class Value Cash 1.72% Equity 98.28% Debt 0.01% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 31 Jul 15 | INFY8% ₹17 Cr 108,000 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 18 | TCS7% ₹15 Cr 45,772 Reliance Industries Ltd Shs Dematerialised (Energy)
Equity, Since 29 Feb 12 | RELIANCE6% ₹12 Cr 57,690 Gujarat Gas Ltd (Utilities)
Equity, Since 31 Mar 19 | 5393365% ₹12 Cr 179,928 UltraTech Cement Ltd (Basic Materials)
Equity, Since 31 Jul 19 | ULTRACEMCO5% ₹11 Cr 16,800 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK5% ₹11 Cr 169,100 Navin Fluorine International Ltd (Basic Materials)
Equity, Since 31 Oct 18 | 5325045% ₹11 Cr 28,061 Tata Steel Ltd (Basic Materials)
Equity, Since 28 Feb 19 | TATASTEEL5% ₹10 Cr 90,000 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 30 Sep 14 | 5006964% ₹10 Cr 39,500 ITC Ltd (Consumer Defensive)
Equity, Since 30 Nov 09 | ITC4% ₹8 Cr 405,400 4. Aditya Birla Sun Life Dividend Yield Fund
CAGR/Annualized return of 18.9% since its launch. Ranked 73 in Dividend Yield category. Return for 2020 was 16.1% , 2019 was 3.5% and 2018 was -14.6% . Aditya Birla Sun Life Dividend Yield Fund
Growth Launch Date 26 Feb 03 NAV (27 Jul 21) ₹241.07 ↓ -0.30 (-0.12 %) Net Assets (Cr) ₹834 on 30 Jun 21 Category Equity - Dividend Yield AMC Birla Sun Life Asset Management Co Ltd Rating ☆ Risk Moderately High Expense Ratio 2.51 Sharpe Ratio 3.31 Information Ratio 0.04 Alpha Ratio 11.61 Min Investment 1,000 Min SIP Investment 1,000 Exit Load 0-365 Days (1%),365 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Jun 16 ₹10,000 30 Jun 17 ₹12,176 30 Jun 18 ₹12,102 30 Jun 19 ₹11,576 30 Jun 20 ₹10,725 30 Jun 21 ₹17,090 Returns for Aditya Birla Sun Life Dividend Yield Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jul 21 Duration Returns 1 Month 3.9% 3 Month 19.2% 6 Month 29.4% 1 Year 55.1% 3 Year 12.1% 5 Year 11.2% 10 Year 15 Year Since launch 18.9% Historical performance (Yearly) on absolute basis
Year Returns 2020 16.1% 2019 3.5% 2018 -14.6% 2017 33.2% 2016 2.6% 2015 -5.5% 2014 55.8% 2013 -3% 2012 29.4% 2011 -18.8% Fund Manager information for Aditya Birla Sun Life Dividend Yield Fund
Name Since Tenure Vineet Maloo 15 Jan 14 7.46 Yr. Data below for Aditya Birla Sun Life Dividend Yield Fund as on 30 Jun 21
Equity Sector Allocation
Sector Value Technology 25.46% Basic Materials 16.47% Financial Services 11.54% Consumer Defensive 8.83% Utility 8.6% Consumer Cyclical 7.53% Industrials 7.43% Energy 7.05% Health Care 5.93% Asset Allocation
Asset Class Value Cash 1.17% Equity 98.83% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Jun 11 | INFY10% ₹80 Cr 505,000 Persistent Systems Ltd (Technology)
Equity, Since 31 Dec 18 | PERSISTENT4% ₹33 Cr 112,700 ITC Ltd (Consumer Defensive)
Equity, Since 28 Feb 18 | ITC4% ₹32 Cr 1,600,000 ICICI Securities Ltd (Financial Services)
Equity, Since 30 Apr 18 | 5411794% ₹32 Cr 505,626 NTPC Ltd (Utilities)
Equity, Since 31 Dec 18 | 5325554% ₹30 Cr 2,543,562 Larsen & Toubro Infotech Ltd (Technology)
Equity, Since 30 Apr 18 | 5400053% ₹28 Cr 70,000 Bharat Electronics Ltd (Industrials)
Equity, Since 28 Feb 18 | BEL3% ₹28 Cr 1,578,000 LVMH Moet Hennessy Louis Vuitton SE (Consumer Cyclical)
Equity, Since 31 Jul 19 | MC3% ₹27 Cr 4,500 Dhanuka Agritech Ltd (Basic Materials)
Equity, Since 30 Jun 16 | 5077173% ₹26 Cr 270,000
↓ -11,187 Starbucks Corp (Consumer Cyclical)
Equity, Since 31 Oct 18 | SBUX3% ₹23 Cr 28,000 5. ICICI Prudential Dividend Yield Equity Fund
CAGR/Annualized return of 12.5% since its launch. Ranked 38 in Dividend Yield category. Return for 2020 was 14.1% , 2019 was -2.9% and 2018 was -11.9% . ICICI Prudential Dividend Yield Equity Fund
Growth Launch Date 16 May 14 NAV (27 Jul 21) ₹23.41 Net Assets (Cr) ₹359 on 30 Jun 21 Category Equity - Dividend Yield AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆ Risk Moderately High Expense Ratio 2.69 Sharpe Ratio 2.77 Information Ratio -0.14 Alpha Ratio 0.76 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Jun 16 ₹10,000 30 Jun 17 ₹13,135 30 Jun 18 ₹13,238 30 Jun 19 ₹13,190 30 Jun 20 ₹10,738 30 Jun 21 ₹17,992 Returns for ICICI Prudential Dividend Yield Equity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jul 21 Duration Returns 1 Month 3.4% 3 Month 17.8% 6 Month 28.9% 1 Year 61.3% 3 Year 11% 5 Year 12.2% 10 Year 15 Year Since launch 12.5% Historical performance (Yearly) on absolute basis
Year Returns 2020 14.1% 2019 -2.9% 2018 -11.9% 2017 40.7% 2016 9.7% 2015 -5.2% 2014 2013 2012 2011 Fund Manager information for ICICI Prudential Dividend Yield Equity Fund
Name Since Tenure Mittul Kalawadia 29 Jan 18 3.42 Yr. Data below for ICICI Prudential Dividend Yield Equity Fund as on 30 Jun 21
Equity Sector Allocation
Sector Value Technology 21.39% Energy 12.98% Utility 12.67% Industrials 10.75% Financial Services 10.61% Basic Materials 6.21% Consumer Defensive 5.95% Health Care 5.62% Communication Services 3.94% Consumer Cyclical 3.64% Asset Allocation
Asset Class Value Cash 6.23% Equity 93.77% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 31 May 14 | INFY8% ₹28 Cr 174,827
↓ -28,441 HCL Technologies Ltd Shs Dematerialised (Technology)
Equity, Since 31 Dec 20 | HCLTECH6% ₹21 Cr 215,606
↑ 11,091 Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Apr 21 | SUNPHARMA6% ₹20 Cr 298,557
↑ 15,600 NTPC Ltd (Utilities)
Equity, Since 31 Oct 16 | 5325555% ₹20 Cr 1,678,655 Gujarat Pipavav Port Ltd (Industrials)
Equity, Since 31 Mar 18 | 5332485% ₹19 Cr 1,719,023
↑ 45,587 ConocoPhillips (Energy)
Equity, Since 30 Jun 21 | COP5% ₹18 Cr 40,036
↑ 40,036 Axis Bank Ltd (Financial Services)
Equity, Since 30 Apr 21 | 5322155% ₹17 Cr 229,631
↑ 104,561 Tech Mahindra Ltd (Technology)
Equity, Since 28 Feb 21 | 5327555% ₹17 Cr 150,820 Tata Power Co Ltd (Utilities)
Equity, Since 31 May 20 | 5004004% ₹14 Cr 1,178,467
↓ -116,504 Bharat Petroleum Corp Ltd (Energy)
Equity, Since 31 May 19 | 5005473% ₹12 Cr 264,862
How to Invest in Dividend Yield Mutual Funds Online?
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Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
FAQs
1. What are the SEBI guidelines for dividend funds?
A: As per the SEBI guidelines in dividend funds, investments must be made only in companies that provide investors with high dividends. Additionally, under this scheme, 65% of the assets must be invested in high dividend-yielding stocks.
2. What should I know before investing in dividend funds?
A: Dividend funds have been known to produce high returns. Some funds have been known to produce an annual return of 21%. However, investors must be prepared to take moderate to high risks when Investing in dividend funds.
3. Who is best suited to invest in dividend funds?
A: Wealth managers suggest that investors should be prepared to look at an investment period of 5 years for dividend funds to produce the desired returns.
4. Why should I invest in UTI Dividend Yield Fund?
A: The UTI Dividend Yield Fund is one of the best performing dividend funds. It has produced excellent returns in the past five years. The UTI Dividend Yield Fund has demonstrated a Compounded Annual Growth Rate or CAGR of 3.33%. So if you are to invest Rs.80,000 now, you can expect a Total Return of Rs 94,237.15 at the end of 5 years.
5. What is the Principal Dividend Yield Fund?
A: It consists of a diversified portfolio of companies that have been known to provide excellent dividends to investors. The particular fund has been known to produce returns of 9.56% on a 7-year Basis. The company has a diversified portfolio of investments in high and mid-cap companies.
6. Can I invest in dividend funds online?
A: Yes, you can invest online. You will have to log-in to the financial institution's account Offering the service, upload a copy of your PAN card, Aadhar card, and Bank details. Once you have completed the registration process, you can invest in dividend funds online.
7. Why should I invest in dividend funds?
A: It is ideal for those who want to earn passive Income. This will help you achieve regular income, even if it is low. Thus, to secure your investment and generate good investment habits, you should invest in dividend funds.
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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Good information.. Should I invest in hdfc dividend yield fund whose nfo is open till 11th