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5 Best Dividend Yield Funds to Invest in 2020
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.
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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.
Top 5 Best Dividend Yield Funds to Invest in FY 20 - 21
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2019 (%) UTI Dividend Yield Fund Growth ₹67.8782
↓ -0.01 ₹2,259 15.9 38.2 8.5 4.4 7.9 3.3 Principal Dividend Yield Fund Growth ₹55.75
↓ -0.10 ₹169 14.3 33 12.5 3.7 10.2 4.4 Templeton India Equity Income Fund Growth ₹46.7481
↑ 0.27 ₹773 16.9 36.9 4.6 0.5 7.6 5.3 Aditya Birla Sun Life Dividend Yield Fund Growth ₹165.49
↓ -0.38 ₹666 16.6 37.6 10.9 -2.6 3.9 3.5 ICICI Prudential Dividend Yield Equity Fund Growth ₹15.3
↑ 0.10 ₹158 15.8 35.9 -0.1 -4.2 5 -2.9 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 18 Sep 20 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.
(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 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 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. UTI Dividend Yield Fund
CAGR/Annualized return of 13.3% since its launch. Ranked 75 in Dividend Yield category. Return for 2019 was 3.3% , 2018 was 0.5% and 2017 was 28.5% . UTI Dividend Yield Fund
Growth Launch Date 3 May 05 NAV (18 Sep 20) ₹67.8782 ↓ -0.01 (-0.01 %) Net Assets (Cr) ₹2,259 on 31 Jul 20 Category Equity - Dividend Yield AMC UTI Asset Management Company Ltd Rating ☆ Risk Moderately High Expense Ratio 2.21 Sharpe Ratio 0.13 Information Ratio 0.33 Alpha Ratio 8.11 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 31 Aug 15 ₹10,000 31 Aug 16 ₹10,941 31 Aug 17 ₹12,567 31 Aug 18 ₹14,609 31 Aug 19 ₹13,339 31 Aug 20 ₹14,149 Returns for UTI Dividend Yield Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Sep 20 Duration Returns 1 Month 0.5% 3 Month 15.9% 6 Month 38.2% 1 Year 8.5% 3 Year 4.4% 5 Year 7.9% 10 Year 15 Year Since launch 13.3% Historical performance (Yearly) on absolute basis
Year Returns 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% 2010 24.3% Fund Manager information for UTI Dividend Yield Fund
Name Since Tenure Swati Kulkarni 1 Dec 05 14.76 Yr. Data below for UTI Dividend Yield Fund as on 31 Jul 20
Equity Sector Allocation
Sector Value Technology 27.3% Consumer Defensive 17.25% Basic Materials 11.95% Financial Services 11.19% Utility 7.62% Energy 7.41% Health Care 6.61% Industrials 5.22% Consumer Cyclical 3.17% Asset Allocation
Asset Class Value Cash 2.24% Equity 97.72% Other 0.04% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Apr 08 | INFY9% ₹205 Cr 2,205,000 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 30 Apr 20 | 5006967% ₹148 Cr 699,327 ITC Ltd (Consumer Defensive)
Equity, Since 30 Nov 07 | ITC6% ₹140 Cr 7,303,025
↑ 576,000 Mphasis Ltd (Technology)
Equity, Since 31 Mar 14 | 5262996% ₹127 Cr 1,152,000 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 08 | TCS5% ₹118 Cr 522,000
↓ -13,500 Tech Mahindra Ltd (Technology)
Equity, Since 31 May 17 | 5327555% ₹113 Cr 1,530,000
↓ -54,000 Sanofi India Ltd (Healthcare)
Equity, Since 31 Dec 14 | 5006743% ₹78 Cr 95,400 Torrent Pharmaceuticals Ltd (Healthcare)
Equity, Since 29 Feb 16 | TORNTPHARM3% ₹72 Cr 270,000 NTPC Ltd (Utilities)
Equity, Since 31 Jul 05 | 5325553% ₹71 Cr 7,354,800
↑ 180,000 Bharat Petroleum Corp Ltd (Energy)
Equity, Since 30 Jun 09 | 5005473% ₹66 Cr 1,620,000
↑ 225,000 2. Principal Dividend Yield Fund
CAGR/Annualized return of 11.4% since its launch. Ranked 37 in Dividend Yield category. Return for 2019 was 4.4% , 2018 was -5.2% and 2017 was 46.6% . Principal Dividend Yield Fund
Growth Launch Date 15 Oct 04 NAV (18 Sep 20) ₹55.75 ↓ -0.10 (-0.18 %) Net Assets (Cr) ₹169 on 31 Jul 20 Category Equity - Dividend Yield AMC Principal Pnb Asset Mgmt. Co. Priv. Ltd. Rating ☆☆☆ Risk Moderately High Expense Ratio 2.97 Sharpe Ratio 0.22 Information Ratio 0.23 Alpha Ratio 10.82 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 31 Aug 15 ₹10,000 31 Aug 16 ₹11,481 31 Aug 17 ₹14,042 31 Aug 18 ₹16,263 31 Aug 19 ₹14,347 31 Aug 20 ₹15,810 Returns for Principal Dividend Yield Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Sep 20 Duration Returns 1 Month 1.3% 3 Month 14.3% 6 Month 33% 1 Year 12.5% 3 Year 3.7% 5 Year 10.2% 10 Year 15 Year Since launch 11.4% Historical performance (Yearly) on absolute basis
Year Returns 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% 2010 24.7% Fund Manager information for Principal Dividend Yield Fund
Name Since Tenure Ravi Gopalakrishnan 11 Oct 19 0.89 Yr. Data below for Principal Dividend Yield Fund as on 31 Jul 20
Equity Sector Allocation
Sector Value Basic Materials 21.19% Consumer Defensive 17.94% Technology 15.52% Consumer Cyclical 12.43% Financial Services 11.46% Energy 9.66% Utility 4.86% Industrials 3.79% Communication Services 2.71% Asset Allocation
Asset Class Value Cash 0.17% Equity 99.83% Top Securities Holdings / Portfolio
Name Holding Value Quantity Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 30 Sep 14 | 5006967% ₹12 Cr 57,870 Reliance Industries Ltd (Energy)
Equity, Since 29 Feb 12 | RELIANCE7% ₹12 Cr 57,690 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 18 | TCS6% ₹11 Cr 46,710 Infosys Ltd (Technology)
Equity, Since 31 Jul 15 | INFY6% ₹10 Cr 108,000 ITC Ltd (Consumer Defensive)
Equity, Since 30 Nov 09 | ITC5% ₹8 Cr 405,400 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK4% ₹7 Cr 180,000 UltraTech Cement Ltd (Basic Materials)
Equity, Since 31 Jul 19 | ULTRACEMCO4% ₹7 Cr 16,800 Navin Fluorine International Ltd (Basic Materials)
Equity, Since 31 Oct 18 | 5325044% ₹6 Cr 31,741 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Aug 13 | HDFCBANK4% ₹6 Cr 53,800 Bajaj Auto Ltd (Consumer Cyclical)
Equity, Since 31 Mar 12 | 5329773% ₹6 Cr 19,800 3. Templeton India Equity Income Fund
CAGR/Annualized return of 11.4% since its launch. Ranked 46 in Dividend Yield category. Return for 2019 was 5.3% , 2018 was -8.6% and 2017 was 34.1% . Templeton India Equity Income Fund
Growth Launch Date 18 May 06 NAV (18 Sep 20) ₹46.7481 ↑ 0.27 (0.58 %) Net Assets (Cr) ₹773 on 31 Jul 20 Category Equity - Dividend Yield AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 2.56 Sharpe Ratio -0.15 Information Ratio -0.46 Alpha Ratio 0.6 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 31 Aug 15 ₹10,000 31 Aug 16 ₹11,456 31 Aug 17 ₹13,760 31 Aug 18 ₹14,996 31 Aug 19 ₹13,655 31 Aug 20 ₹14,097 Returns for Templeton India Equity Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Sep 20 Duration Returns 1 Month 2.4% 3 Month 16.9% 6 Month 36.9% 1 Year 4.6% 3 Year 0.5% 5 Year 7.6% 10 Year 15 Year Since launch 11.4% Historical performance (Yearly) on absolute basis
Year Returns 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% 2010 24.1% Fund Manager information for Templeton India Equity Income Fund
Name Since Tenure Anand Radhakrishnan 1 Jan 19 1.67 Yr. Lakshmikanth Reddy 1 Jan 19 1.67 Yr. Pyari Menon 26 Sep 19 0.93 Yr. Data below for Templeton India Equity Income Fund as on 31 Jul 20
Equity Sector Allocation
Sector Value Technology 23.98% Utility 21.78% Basic Materials 10% Consumer Cyclical 9.79% Consumer Defensive 9.33% Energy 7.85% Industrials 6.59% Financial Services 5.37% Health Care 2.07% Real Estate 1.3% Asset Allocation
Asset Class Value Equity 98.05% Other 1.95% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Apr 13 | INFY9% ₹76 Cr 815,444 Xinyi Solar Holdings Ltd (Technology)
Equity, Since 31 Oct 16 | 009686% ₹47 Cr 5,075,983
↓ -1,000,000 Power Grid Corp Of India Ltd (Utilities)
Equity, Since 31 Jan 19 | 5328986% ₹45 Cr 2,509,054 Tata Power Co Ltd (Utilities)
Equity, Since 30 Jun 19 | 5004005% ₹43 Cr 7,297,866 Unilever PLC ADR (Consumer Defensive)
Equity, Since 31 Dec 19 | UL5% ₹38 Cr 86,900 NTPC Ltd (Utilities)
Equity, Since 31 Jan 19 | 5325554% ₹32 Cr 3,350,145 NHPC Ltd (Utilities)
Equity, Since 31 Mar 20 | 5330984% ₹31 Cr 14,497,327 Tata Investment Corp Ltd (Financial Services)
Equity, Since 28 Feb 07 | 5013013% ₹23 Cr 284,585 Tata Consumer Products Ltd (Consumer Defensive)
Equity, Since 31 Mar 20 | 5008003% ₹21 Cr 401,912 Finolex Industries Ltd (Industrials)
Equity, Since 31 Jan 19 | FINPIPE3% ₹21 Cr 419,757 4. Aditya Birla Sun Life Dividend Yield Fund
CAGR/Annualized return of 17.3% since its launch. Ranked 73 in Dividend Yield category. Return for 2019 was 3.5% , 2018 was -14.6% and 2017 was 33.2% . Aditya Birla Sun Life Dividend Yield Fund
Growth Launch Date 26 Feb 03 NAV (18 Sep 20) ₹165.49 ↓ -0.38 (-0.23 %) Net Assets (Cr) ₹666 on 31 Jul 20 Category Equity - Dividend Yield AMC Birla Sun Life Asset Management Co Ltd Rating ☆ Risk Moderately High Expense Ratio 2.44 Sharpe Ratio 0.13 Information Ratio -0.79 Alpha Ratio 9.37 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 31 Aug 15 ₹10,000 31 Aug 16 ₹10,706 31 Aug 17 ₹12,720 31 Aug 18 ₹12,982 31 Aug 19 ₹10,776 31 Aug 20 ₹11,779 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 18 Sep 20 Duration Returns 1 Month 1.9% 3 Month 16.6% 6 Month 37.6% 1 Year 10.9% 3 Year -2.6% 5 Year 3.9% 10 Year 15 Year Since launch 17.3% Historical performance (Yearly) on absolute basis
Year Returns 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% 2010 29.8% Fund Manager information for Aditya Birla Sun Life Dividend Yield Fund
Name Since Tenure Vineet Maloo 15 Jan 14 6.63 Yr. Data below for Aditya Birla Sun Life Dividend Yield Fund as on 31 Jul 20
Equity Sector Allocation
Sector Value Technology 20.46% Financial Services 15.99% Basic Materials 14.32% Consumer Defensive 8.85% Health Care 8.72% Consumer Cyclical 8.62% Utility 8.23% Industrials 7.99% Energy 4.05% Communication Services 0.92% Asset Allocation
Asset Class Value Cash 1.87% Equity 98.13% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Jun 11 | INFY8% ₹58 Cr 620,000 ICICI Securities Ltd (Financial Services)
Equity, Since 30 Apr 18 | 5411795% ₹32 Cr 668,400 Dhanuka Agritech Ltd (Basic Materials)
Equity, Since 30 Jun 16 | 5077174% ₹26 Cr 339,218 Larsen & Toubro Infotech Ltd (Technology)
Equity, Since 30 Apr 18 | 5400054% ₹24 Cr 99,645 ITC Ltd (Consumer Defensive)
Equity, Since 28 Feb 18 | ITC4% ₹24 Cr 1,263,000 Sanofi India Ltd (Healthcare)
Equity, Since 31 Mar 15 | 5006743% ₹21 Cr 25,000 Pfizer Ltd (Healthcare)
Equity, Since 30 Jun 07 | PFIZER3% ₹20 Cr 44,183 Multi Commodity Exchange of India Ltd (Financial Services)
Equity, Since 31 Dec 14 | MCX3% ₹19 Cr 120,000 Orient Refractories Ltd (Industrials)
Equity, Since 31 Mar 14 | 5340763% ₹19 Cr 975,896 Coal India Ltd (Energy)
Equity, Since 31 Oct 18 | COALINDIA3% ₹18 Cr 1,303,854 5. ICICI Prudential Dividend Yield Equity Fund
CAGR/Annualized return of 6.9% since its launch. Ranked 38 in Dividend Yield category. Return for 2019 was -2.9% , 2018 was -11.9% and 2017 was 40.7% . ICICI Prudential Dividend Yield Equity Fund
Growth Launch Date 16 May 14 NAV (18 Sep 20) ₹15.3 ↑ 0.10 (0.66 %) Net Assets (Cr) ₹158 on 31 Jul 20 Category Equity - Dividend Yield AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆ Risk Moderately High Expense Ratio 2.77 Sharpe Ratio -0.31 Information Ratio -1.11 Alpha Ratio -3.78 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 31 Aug 15 ₹10,000 31 Aug 16 ₹11,477 31 Aug 17 ₹13,973 31 Aug 18 ₹15,017 31 Aug 19 ₹12,755 31 Aug 20 ₹12,513 Returns for ICICI Prudential Dividend Yield Equity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Sep 20 Duration Returns 1 Month 1.2% 3 Month 15.8% 6 Month 35.9% 1 Year -0.1% 3 Year -4.2% 5 Year 5% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2019 -2.9% 2018 -11.9% 2017 40.7% 2016 9.7% 2015 -5.2% 2014 2013 2012 2011 2010 Fund Manager information for ICICI Prudential Dividend Yield Equity Fund
Name Since Tenure Mrinal Singh 16 May 14 6.3 Yr. Mittul Kalawadia 29 Jan 18 2.59 Yr. Data below for ICICI Prudential Dividend Yield Equity Fund as on 31 Jul 20
Equity Sector Allocation
Sector Value Technology 17.26% Utility 16.58% Industrials 15.5% Consumer Defensive 14.25% Consumer Cyclical 9.93% Energy 7.68% Basic Materials 7.65% Communication Services 2.61% Financial Services 2.12% Health Care 0.99% Asset Allocation
Asset Class Value Cash 5.41% Equity 94.59% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 31 May 14 | INFY12% ₹19 Cr 207,713 Gujarat Pipavav Port Ltd (Industrials)
Equity, Since 31 Mar 18 | 5332489% ₹15 Cr 1,814,575 NTPC Ltd (Utilities)
Equity, Since 31 Oct 16 | 5325558% ₹14 Cr 1,438,241 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jul 17 | ITC6% ₹10 Cr 505,127 Tata Power Co Ltd (Utilities)
Equity, Since 31 May 20 | 5004006% ₹9 Cr 1,581,503 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 May 20 | 5006964% ₹7 Cr 34,169
↓ -15,156 Bharat Petroleum Corp Ltd (Energy)
Equity, Since 31 May 19 | 5005474% ₹6 Cr 146,622 Vedanta Ltd (Basic Materials)
Equity, Since 31 May 20 | 5002953% ₹6 Cr 439,346 Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 31 Aug 20 | 5411543% ₹6 Cr 60,718
↑ 60,718 Hexaware Technologies Ltd (Technology)
Equity, Since 30 Jun 20 | 5321293% ₹5 Cr 136,546
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