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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 (%) 2018 (%) Principal Dividend Yield Fund Growth ₹55.79
↓ -0.14 ₹183 5.8 12.1 12.5 11.6 8.2 4.4 Templeton India Equity Income Fund Growth ₹47.5442
↓ -0.20 ₹909 5.4 5 8.6 7.9 6.5 5.3 ICICI Prudential Dividend Yield Equity Fund Growth ₹16.15
↓ -0.06 ₹171 4.7 2.3 2.9 4.8 4.4 -2.9 Aditya Birla Sun Life Dividend Yield Fund Growth ₹168.64
↓ -0.47 ₹753 8.3 12.1 12.6 3.8 2.5 3.5 UTI Dividend Yield Fund Growth ₹66.8267
↓ -0.20 ₹2,346 2.7 7 7.8 8.6 5.5 3.3 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 28 Jan 20
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.
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 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 (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 (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 1. Principal Dividend Yield Fund
CAGR/Annualized return of 11.9% 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 (28 Jan 20) ₹55.79 ↓ -0.14 (-0.25 %) Net Assets (Cr) ₹183 on 31 Dec 19 Category Equity - Dividend Yield AMC Principal Pnb Asset Mgmt. Co. Priv. Ltd. Rating ☆☆☆ Risk Moderately High Expense Ratio 2.97 Sharpe Ratio 0.14 Information Ratio 0.63 Alpha Ratio 3.88 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 Dec 14 ₹10,000 31 Dec 15 ₹9,661 31 Dec 16 ₹10,361 31 Dec 17 ₹15,189 31 Dec 18 ₹14,394 31 Dec 19 ₹15,031 Returns for Principal Dividend Yield Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Jan 20 Duration Returns 1 Month 2.6% 3 Month 5.8% 6 Month 12.1% 1 Year 12.5% 3 Year 11.6% 5 Year 8.2% 10 Year 15 Year Since launch 11.9% Historical performance (Yearly) on absolute basis
Year Returns 2018 4.4% 2017 -5.2% 2016 46.6% 2015 7.2% 2014 -3.4% 2013 44.9% 2012 -5.3% 2011 41.9% 2010 -26.8% 2009 24.7% Fund Manager information for Principal Dividend Yield Fund
Name Since Tenure Ravi Gopalakrishnan 11 Oct 19 0.06 Yr. Data below for Principal Dividend Yield Fund as on 31 Dec 19
Equity Sector Allocation
Sector Value Consumer Defensive 18.58% Basic Materials 18% Financial Services 17.7% Technology 13.87% Consumer Cyclical 10.75% Energy 8.46% Utility 5.37% Industrials 4.01% Communication Services 0.94% Health Care 0.42% Asset Allocation
Asset Class Value Cash 1.87% Equity 98.13% Top Securities Holdings / Portfolio
Name Holding Value Quantity Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 30 Sep 14 | 5006969% ₹17 Cr 83,980 ITC Ltd (Consumer Defensive)
Equity, Since 30 Nov 09 | ITC6% ₹11 Cr 444,000 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 18 | TCS5% ₹10 Cr 46,710 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK5% ₹9 Cr 180,000 Reliance Industries Ltd (Energy)
Equity, Since 29 Feb 12 | RELIANCE5% ₹9 Cr 57,690 Infosys Ltd (Technology)
Equity, Since 31 Jul 15 | INFY4% ₹8 Cr 108,000 UltraTech Cement Ltd (Basic Materials)
Equity, Since 31 Jul 19 | ULTRACEMCO4% ₹7 Cr 16,800 Bharat Petroleum Corp Ltd (Energy)
Equity, Since 30 Sep 18 | 5005474% ₹7 Cr 138,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Aug 13 | HDFCBANK4% ₹7 Cr 53,800 Bajaj Auto Ltd (Consumer Cyclical)
Equity, Since 31 Mar 12 | 5329773% ₹6 Cr 19,800 2. Templeton India Equity Income Fund
CAGR/Annualized return of 12.1% 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 (28 Jan 20) ₹47.5442 ↓ -0.20 (-0.42 %) Net Assets (Cr) ₹909 on 31 Dec 19 Category Equity - Dividend Yield AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 2.56 Sharpe Ratio 0.27 Information Ratio 0 Alpha Ratio 0 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 Dec 14 ₹10,000 31 Dec 15 ₹9,840 31 Dec 16 ₹10,764 31 Dec 17 ₹14,436 31 Dec 18 ₹13,193 31 Dec 19 ₹13,890 Returns for Templeton India Equity Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Jan 20 Duration Returns 1 Month 3% 3 Month 5.4% 6 Month 5% 1 Year 8.6% 3 Year 7.9% 5 Year 6.5% 10 Year 15 Year Since launch 12.1% Historical performance (Yearly) on absolute basis
Year Returns 2018 5.3% 2017 -8.6% 2016 34.1% 2015 9.4% 2014 -1.6% 2013 38.5% 2012 3.7% 2011 36.1% 2010 -23.7% 2009 24.1% Fund Manager information for Templeton India Equity Income Fund
Name Since Tenure Anand Radhakrishnan 1 Jan 19 0.91 Yr. Lakshmikanth Reddy 1 Jan 19 0.91 Yr. Pyari Menon 26 Sep 19 0.18 Yr. Data below for Templeton India Equity Income Fund as on 31 Dec 19
Equity Sector Allocation
Sector Value Technology 15.52% Utility 15% Consumer Cyclical 14.64% Basic Materials 11.53% Energy 10.02% Financial Services 9.12% Industrials 8.16% Health Care 7.32% Consumer Defensive 5.08% Real Estate 2.15% Asset Allocation
Asset Class Value Equity 98.54% Other 1.46% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Apr 13 | INFY5% ₹45 Cr 615,444 Call, Cash & Other Assets
Receivables | -5% ₹42 Cr Xinyi Solar Holdings Ltd (Technology)
Equity, Since 31 Oct 16 | 009685% ₹41 Cr 8,075,983 Power Grid Corp Of India Ltd (Utilities)
Equity, Since 31 Jan 19 | 5328984% ₹38 Cr 2,009,054 NTPC Ltd (Utilities)
Equity, Since 31 Jan 19 | 5325554% ₹38 Cr 3,150,145 Tata Chemicals Ltd (Basic Materials)
Equity, Since 28 Feb 07 | 5007704% ₹32 Cr 484,134 Petronet LNG Ltd (Energy)
Equity, Since 31 Jan 19 | 5325223% ₹28 Cr 1,053,388 Tata Power Co Ltd (Utilities)
Equity, Since 30 Jun 19 | 5004003% ₹27 Cr 4,797,866 Coal India Ltd (Energy)
Equity, Since 31 Jan 14 | COALINDIA3% ₹26 Cr 1,247,000 Tata Investment Corp Ltd (Financial Services)
Equity, Since 28 Feb 07 | 5013013% ₹23 Cr 284,585 3. ICICI Prudential Dividend Yield Equity Fund
CAGR/Annualized return of 8.8% 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 (28 Jan 20) ₹16.15 ↓ -0.06 (-0.37 %) Net Assets (Cr) ₹171 on 31 Dec 19 Category Equity - Dividend Yield AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆ Risk Moderately High Expense Ratio 2.77 Sharpe Ratio -0.38 Information Ratio -0.44 Alpha Ratio -2.88 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 Dec 14 ₹10,000 31 Dec 15 ₹9,481 31 Dec 16 ₹10,401 31 Dec 17 ₹14,638 31 Dec 18 ₹12,893 31 Dec 19 ₹12,516 Returns for ICICI Prudential Dividend Yield Equity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Jan 20 Duration Returns 1 Month 1.8% 3 Month 4.7% 6 Month 2.3% 1 Year 2.9% 3 Year 4.8% 5 Year 4.4% 10 Year 15 Year Since launch 8.8% Historical performance (Yearly) on absolute basis
Year Returns 2018 -2.9% 2017 -11.9% 2016 40.7% 2015 9.7% 2014 -5.2% 2013 2012 2011 2010 2009 Fund Manager information for ICICI Prudential Dividend Yield Equity Fund
Name Since Tenure Mrinal Singh 16 May 14 5.63 Yr. Mittul Kalawadia 29 Jan 18 1.92 Yr. Data below for ICICI Prudential Dividend Yield Equity Fund as on 31 Dec 19
Equity Sector Allocation
Sector Value Technology 16.55% Industrials 16.35% Energy 14.08% Financial Services 13.87% Basic Materials 12.8% Consumer Defensive 11.01% Utility 10% Consumer Cyclical 1.13% Health Care 0.83% Communication Services 0.16% Asset Allocation
Asset Class Value Cash 0.61% Equity 99.39% Top Securities Holdings / Portfolio
Name Holding Value Quantity Gujarat Pipavav Port Ltd (Industrials)
Equity, Since 31 Mar 18 | 53324810% ₹16 Cr 1,814,575 NTPC Ltd (Utilities)
Equity, Since 31 Oct 16 | 5325559% ₹15 Cr 1,306,047 Infosys Ltd (Technology)
Equity, Since 31 May 14 | INFY9% ₹15 Cr 213,082 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jul 17 | ITC8% ₹14 Cr 579,042 Hindustan Petroleum Corp Ltd (Energy)
Equity, Since 31 May 18 | HINDPETRO5% ₹9 Cr 301,878 Tata Chemicals Ltd (Basic Materials)
Equity, Since 31 May 14 | 5007705% ₹8 Cr 114,280 Cummins India Ltd (Industrials)
Equity, Since 31 May 14 | 5004804% ₹7 Cr 125,532 Hindustan Zinc Ltd (Basic Materials)
Equity, Since 30 Nov 19 | 5001884% ₹6 Cr 284,539
↑ 284,539 Tech Mahindra Ltd (Technology)
Equity, Since 31 Jul 19 | 5327553% ₹6 Cr 77,370 Bharat Petroleum Corp Ltd (Energy)
Equity, Since 31 May 19 | 5005473% ₹6 Cr 111,220 4. Aditya Birla Sun Life Dividend Yield Fund
CAGR/Annualized return of 18.2% 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 (28 Jan 20) ₹168.64 ↓ -0.47 (-0.28 %) Net Assets (Cr) ₹753 on 31 Dec 19 Category Equity - Dividend Yield AMC Birla Sun Life Asset Management Co Ltd Rating ☆ Risk Moderately High Expense Ratio 2.44 Sharpe Ratio 0.06 Information Ratio -0.54 Alpha Ratio 2.71 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 Dec 14 ₹10,000 31 Dec 15 ₹9,450 31 Dec 16 ₹9,696 31 Dec 17 ₹12,914 31 Dec 18 ₹11,032 31 Dec 19 ₹11,414 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 28 Jan 20 Duration Returns 1 Month 3.7% 3 Month 8.3% 6 Month 12.1% 1 Year 12.6% 3 Year 3.8% 5 Year 2.5% 10 Year 15 Year Since launch 18.2% Historical performance (Yearly) on absolute basis
Year Returns 2018 3.5% 2017 -14.6% 2016 33.2% 2015 2.6% 2014 -5.5% 2013 55.8% 2012 -3% 2011 29.4% 2010 -18.8% 2009 29.8% Fund Manager information for Aditya Birla Sun Life Dividend Yield Fund
Name Since Tenure Satyabrata Mohanty 16 Jul 15 4.3 Yr. Vineet Maloo 15 Jan 14 5.79 Yr. Data below for Aditya Birla Sun Life Dividend Yield Fund as on 31 Dec 19
Equity Sector Allocation
Sector Value Financial Services 18.05% Technology 14.87% Consumer Defensive 11.9% Basic Materials 10.53% Utility 9.47% Consumer Cyclical 9.28% Industrials 7.45% Health Care 7.43% Energy 5.99% Communication Services 3.23% Asset Allocation
Asset Class Value Cash 1.8% Equity 98.2% Other 0% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Jun 11 | INFY6% ₹43 Cr 620,000 Coal India Ltd (Energy)
Equity, Since 31 Oct 18 | COALINDIA5% ₹38 Cr 1,857,946
↑ 100,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 18 | HDFCBANK3% ₹25 Cr 200,000 ITC Ltd (Consumer Defensive)
Equity, Since 28 Feb 18 | ITC3% ₹24 Cr 963,000 Mahanagar Gas Ltd (Utilities)
Equity, Since 30 Jun 16 | MGL3% ₹24 Cr 225,635 ICICI Securities Ltd (Financial Services)
Equity, Since 30 Apr 18 | 5411793% ₹23 Cr 668,400 Sanofi India Ltd (Healthcare)
Equity, Since 31 Mar 15 | 5006743% ₹23 Cr 32,431 Orient Refractories Ltd (Industrials)
Equity, Since 31 Mar 14 | 5340763% ₹22 Cr 971,896 Pfizer Ltd (Healthcare)
Equity, Since 30 Jun 07 | PFIZER3% ₹21 Cr 50,000 NTPC Ltd (Utilities)
Equity, Since 31 Dec 18 | 5325553% ₹20 Cr 1,682,400 5. UTI Dividend Yield Fund
CAGR/Annualized return of 13.8% 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 (28 Jan 20) ₹66.8267 ↓ -0.20 (-0.29 %) Net Assets (Cr) ₹2,346 on 31 Dec 19 Category Equity - Dividend Yield AMC UTI Asset Management Company Ltd Rating ☆ Risk Moderately High Expense Ratio 2.21 Sharpe Ratio 0.03 Information Ratio 0.14 Alpha Ratio 2.08 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 Dec 14 ₹10,000 31 Dec 15 ₹9,487 31 Dec 16 ₹10,066 31 Dec 17 ₹12,935 31 Dec 18 ₹12,997 31 Dec 19 ₹13,420 Returns for UTI Dividend Yield Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Jan 20 Duration Returns 1 Month 1.6% 3 Month 2.7% 6 Month 7% 1 Year 7.8% 3 Year 8.6% 5 Year 5.5% 10 Year 15 Year Since launch 13.8% Historical performance (Yearly) on absolute basis
Year Returns 2018 3.3% 2017 0.5% 2016 28.5% 2015 6.1% 2014 -5.1% 2013 41.2% 2012 0.2% 2011 22.4% 2010 -17.5% 2009 24.3% Fund Manager information for UTI Dividend Yield Fund
Name Since Tenure Swati Kulkarni 1 Dec 05 14.01 Yr. Data below for UTI Dividend Yield Fund as on 31 Dec 19
Equity Sector Allocation
Sector Value Technology 25.79% Consumer Defensive 15% Financial Services 12.4% Energy 12.29% Basic Materials 11.5% Utility 8.82% Health Care 4.97% Industrials 3.78% Consumer Cyclical 2.54% Communication Services 0.55% Asset Allocation
Asset Class Value Cash 2.3% Equity 97.65% Other 0.06% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Apr 08 | INFY8% ₹188 Cr 2,700,000 Tech Mahindra Ltd (Technology)
Equity, Since 31 May 17 | 5327556% ₹142 Cr 1,858,500 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 08 | TCS6% ₹135 Cr 657,000 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Sep 07 | ICICIBANK5% ₹123 Cr 2,395,000
↓ -405,000 ITC Ltd (Consumer Defensive)
Equity, Since 30 Nov 07 | ITC5% ₹115 Cr 4,662,000 Mphasis Ltd (Technology)
Equity, Since 31 Mar 14 | 5262994% ₹105 Cr 1,190,000 GlaxoSmithKline Consumer Healthcare Ltd (Consumer Defensive)
Equity, Since 28 Feb 17 | 5006764% ₹104 Cr 118,098
↑ 46,098 Bharat Petroleum Corp Ltd (Energy)
Equity, Since 30 Jun 09 | 5005473% ₹71 Cr 1,395,000 NTPC Ltd (Utilities)
Equity, Since 31 Jul 05 | 5325553% ₹70 Cr 6,022,800
↑ 720,000 Sanofi India Ltd (Healthcare)
Equity, Since 31 Dec 14 | 5006743% ₹67 Cr 95,400
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