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5 Best Dividend Yield Mutual Funds to Invest in 2021 | fincash.com

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5 Best Dividend Yield Funds to Invest in 2021

Updated on July 25, 2021 , 13338 views

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.

Best-Dividend-Funds

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

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2020 (%)
Templeton India Equity Income Fund Growth ₹73.7626
↓ -0.26
₹1,14214.527.972.515.315.422.9
UTI Dividend Yield Fund Growth ₹98.4683
↓ -0.28
₹2,93216.324.351.215.214.818.9
Principal Dividend Yield Fund Growth ₹79.52
↓ -0.22
₹21811.119.849.514.216.120.2
Aditya Birla Sun Life Dividend Yield Fund Growth ₹241.07
↓ -0.30
₹83419.229.455.112.111.216.1
ICICI Prudential Dividend Yield Equity Fund Growth ₹23.41
₹35917.828.961.31112.214.1
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 27 Jul 21
*List of Funds Based on 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.

1. Templeton India Equity Income Fund

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 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% .

Below is the key information for Templeton India Equity Income Fund

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.

DateValue
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

Templeton India Equity Income Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹447,579.
Net Profit of ₹147,579
Invest Now

Returns for Templeton India Equity Income Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jul 21

DurationReturns
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
YearReturns
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
NameSinceTenure
Anand Radhakrishnan1 Jan 192.5 Yr.
Lakshmikanth Reddy1 Jan 192.5 Yr.
Mayank Bukrediwala24 Aug 200.85 Yr.

Data below for Templeton India Equity Income Fund as on 30 Jun 21

Equity Sector Allocation
SectorValue
Technology23.12%
Utility20.49%
Consumer Cyclical11.2%
Consumer Defensive8.63%
Industrials7.33%
Real Estate7.28%
Energy5.76%
Basic Materials5.17%
Financial Services1.15%
Health Care0.95%
Asset Allocation
Asset ClassValue
Cash8.91%
Equity91.09%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Infosys Ltd (Technology)
Equity, Since 30 Apr 13 | INFY
11%₹123 Cr775,444
Power Grid Corp Of India Ltd (Utilities)
Equity, Since 31 Jan 19 | 532898
6%₹70 Cr3,009,054
Embassy Office Parks REIT (Real Estate)
-, Since 31 Oct 19 | 542602
5%₹52 Cr1,483,400
↑ 250,000
Tata Power Co Ltd (Utilities)
Equity, Since 30 Jun 19 | 500400
4%₹50 Cr4,085,759
↓ -562,107
Finolex Industries Ltd Shs Dematerialised (Industrials)
Equity, Since 31 Jan 19 | FINPIPE
3%₹39 Cr2,098,785
NTPC Ltd (Utilities)
Equity, Since 31 Jan 19 | 532555
3%₹38 Cr3,291,938
Unilever PLC ADR (Consumer Defensive)
Equity, Since 31 Dec 19 | UL
3%₹38 Cr86,900
NHPC Ltd (Utilities)
Equity, Since 31 Mar 20 | 533098
3%₹38 Cr14,497,327
Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Oct 20 | 500696
3%₹34 Cr138,206
Redington (India) Ltd (Technology)
Equity, Since 30 Jun 16 | 532805
3%₹33 Cr1,230,352

2. UTI Dividend Yield Fund

(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 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% .

Below is the key information for UTI Dividend Yield Fund

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.

DateValue
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

UTI Dividend Yield Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹436,710.
Net Profit of ₹136,710
Invest Now

Returns for UTI Dividend Yield Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jul 21

DurationReturns
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
YearReturns
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
NameSinceTenure
Swati Kulkarni1 Dec 0515.59 Yr.

Data below for UTI Dividend Yield Fund as on 30 Jun 21

Equity Sector Allocation
SectorValue
Technology29.62%
Consumer Defensive15.91%
Basic Materials12.46%
Financial Services10.55%
Energy8.14%
Utility7.36%
Industrials6.59%
Health Care5.44%
Consumer Cyclical2.88%
Asset Allocation
Asset ClassValue
Cash1.03%
Equity98.96%
Other0.02%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Infosys Ltd (Technology)
Equity, Since 30 Apr 08 | INFY
10%₹279 Cr1,766,000
Tech Mahindra Ltd (Technology)
Equity, Since 31 May 17 | 532755
7%₹193 Cr1,760,000
Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 30 Apr 20 | 500696
6%₹173 Cr699,327
ITC Ltd (Consumer Defensive)
Equity, Since 30 Nov 07 | ITC
5%₹160 Cr7,893,000
Mphasis Ltd (Technology)
Equity, Since 31 Mar 14 | 526299
5%₹156 Cr729,000
Tata Steel Ltd (Basic Materials)
Equity, Since 31 Aug 19 | TATASTEEL
5%₹143 Cr1,224,000
↓ -126,000
Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 08 | TCS
4%₹114 Cr342,000
NTPC Ltd (Utilities)
Equity, Since 31 Jul 05 | 532555
4%₹112 Cr9,650,353
Bharat Petroleum Corp Ltd (Energy)
Equity, Since 30 Jun 09 | 500547
3%₹98 Cr2,099,826
Larsen & Toubro Infotech Ltd (Technology)
Equity, Since 30 Jun 19 | 540005
3%₹88 Cr216,000

3. Principal Dividend Yield Fund

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 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% .

Below is the key information for Principal Dividend Yield Fund

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.

DateValue
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

Principal Dividend Yield Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹458,689.
Net Profit of ₹158,689
Invest Now

Returns for Principal Dividend Yield Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jul 21

DurationReturns
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
YearReturns
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
NameSinceTenure
Ravi Gopalakrishnan11 Oct 191.72 Yr.

Data below for Principal Dividend Yield Fund as on 30 Jun 21

Equity Sector Allocation
SectorValue
Basic Materials24.37%
Technology18.73%
Financial Services13.63%
Consumer Defensive11.71%
Consumer Cyclical10.21%
Energy7.42%
Utility5.96%
Industrials3.83%
Communication Services2.16%
Asset Allocation
Asset ClassValue
Cash1.72%
Equity98.28%
Debt0.01%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Infosys Ltd (Technology)
Equity, Since 31 Jul 15 | INFY
8%₹17 Cr108,000
Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 18 | TCS
7%₹15 Cr45,772
Reliance Industries Ltd Shs Dematerialised (Energy)
Equity, Since 29 Feb 12 | RELIANCE
6%₹12 Cr57,690
Gujarat Gas Ltd (Utilities)
Equity, Since 31 Mar 19 | 539336
5%₹12 Cr179,928
UltraTech Cement Ltd (Basic Materials)
Equity, Since 31 Jul 19 | ULTRACEMCO
5%₹11 Cr16,800
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK
5%₹11 Cr169,100
Navin Fluorine International Ltd (Basic Materials)
Equity, Since 31 Oct 18 | 532504
5%₹11 Cr28,061
Tata Steel Ltd (Basic Materials)
Equity, Since 28 Feb 19 | TATASTEEL
5%₹10 Cr90,000
Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 30 Sep 14 | 500696
4%₹10 Cr39,500
ITC Ltd (Consumer Defensive)
Equity, Since 30 Nov 09 | ITC
4%₹8 Cr405,400

4. Aditya Birla Sun Life Dividend Yield Fund

(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 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% .

Below is the key information for Aditya Birla Sun Life Dividend Yield Fund

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.

DateValue
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

Aditya Birla Sun Life Dividend Yield Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹405,518.
Net Profit of ₹105,518
Invest Now

Returns for Aditya Birla Sun Life Dividend Yield Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jul 21

DurationReturns
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
YearReturns
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
NameSinceTenure
Vineet Maloo15 Jan 147.46 Yr.

Data below for Aditya Birla Sun Life Dividend Yield Fund as on 30 Jun 21

Equity Sector Allocation
SectorValue
Technology25.46%
Basic Materials16.47%
Financial Services11.54%
Consumer Defensive8.83%
Utility8.6%
Consumer Cyclical7.53%
Industrials7.43%
Energy7.05%
Health Care5.93%
Asset Allocation
Asset ClassValue
Cash1.17%
Equity98.83%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Infosys Ltd (Technology)
Equity, Since 30 Jun 11 | INFY
10%₹80 Cr505,000
Persistent Systems Ltd (Technology)
Equity, Since 31 Dec 18 | PERSISTENT
4%₹33 Cr112,700
ITC Ltd (Consumer Defensive)
Equity, Since 28 Feb 18 | ITC
4%₹32 Cr1,600,000
ICICI Securities Ltd (Financial Services)
Equity, Since 30 Apr 18 | 541179
4%₹32 Cr505,626
NTPC Ltd (Utilities)
Equity, Since 31 Dec 18 | 532555
4%₹30 Cr2,543,562
Larsen & Toubro Infotech Ltd (Technology)
Equity, Since 30 Apr 18 | 540005
3%₹28 Cr70,000
Bharat Electronics Ltd (Industrials)
Equity, Since 28 Feb 18 | BEL
3%₹28 Cr1,578,000
LVMH Moet Hennessy Louis Vuitton SE (Consumer Cyclical)
Equity, Since 31 Jul 19 | MC
3%₹27 Cr4,500
Dhanuka Agritech Ltd (Basic Materials)
Equity, Since 30 Jun 16 | 507717
3%₹26 Cr270,000
↓ -11,187
Starbucks Corp (Consumer Cyclical)
Equity, Since 31 Oct 18 | SBUX
3%₹23 Cr28,000

5. ICICI Prudential Dividend Yield Equity Fund

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 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% .

Below is the key information for ICICI Prudential Dividend Yield Equity Fund

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.

DateValue
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

ICICI Prudential Dividend Yield Equity Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹415,684.
Net Profit of ₹115,684
Invest Now

Returns for ICICI Prudential Dividend Yield Equity Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jul 21

DurationReturns
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
YearReturns
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
NameSinceTenure
Mittul Kalawadia29 Jan 183.42 Yr.

Data below for ICICI Prudential Dividend Yield Equity Fund as on 30 Jun 21

Equity Sector Allocation
SectorValue
Technology21.39%
Energy12.98%
Utility12.67%
Industrials10.75%
Financial Services10.61%
Basic Materials6.21%
Consumer Defensive5.95%
Health Care5.62%
Communication Services3.94%
Consumer Cyclical3.64%
Asset Allocation
Asset ClassValue
Cash6.23%
Equity93.77%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Infosys Ltd (Technology)
Equity, Since 31 May 14 | INFY
8%₹28 Cr174,827
↓ -28,441
HCL Technologies Ltd Shs Dematerialised (Technology)
Equity, Since 31 Dec 20 | HCLTECH
6%₹21 Cr215,606
↑ 11,091
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Apr 21 | SUNPHARMA
6%₹20 Cr298,557
↑ 15,600
NTPC Ltd (Utilities)
Equity, Since 31 Oct 16 | 532555
5%₹20 Cr1,678,655
Gujarat Pipavav Port Ltd (Industrials)
Equity, Since 31 Mar 18 | 533248
5%₹19 Cr1,719,023
↑ 45,587
ConocoPhillips (Energy)
Equity, Since 30 Jun 21 | COP
5%₹18 Cr40,036
↑ 40,036
Axis Bank Ltd (Financial Services)
Equity, Since 30 Apr 21 | 532215
5%₹17 Cr229,631
↑ 104,561
Tech Mahindra Ltd (Technology)
Equity, Since 28 Feb 21 | 532755
5%₹17 Cr150,820
Tata Power Co Ltd (Utilities)
Equity, Since 31 May 20 | 500400
4%₹14 Cr1,178,467
↓ -116,504
Bharat Petroleum Corp Ltd (Energy)
Equity, Since 31 May 19 | 500547
3%₹12 Cr264,862

How to Invest in Dividend Yield Mutual Funds Online?

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  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

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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.

Disclaimer:
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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POST A COMMENT

Kishor Jobanputra, posted on 5 Dec 20 8:37 PM

Good information.. Should I invest in hdfc dividend yield fund whose nfo is open till 11th

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