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5 Best Dividend Yield Funds to Invest in 2019
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 19 - 20
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2018 (%) Principal Dividend Yield Fund Growth ₹53.55
↓ -0.28 ₹200 8.3 -0.3 5.1 12.4 7.6 -5.2 Templeton India Equity Income Fund Growth ₹45.4598
↓ -0.28 ₹921 1.7 -1.6 4.3 7.9 6.1 -8.6 ICICI Prudential Dividend Yield Equity Fund Growth ₹15.59
↓ -0.23 ₹174 0.5 -7.4 -1.1 5.5 3.9 -11.9 UTI Dividend Yield Fund Growth ₹64.5044
↓ -0.47 ₹2,463 2.5 -0.8 4.7 9.5 5.2 0.5 Aditya Birla Sun Life Dividend Yield Fund Growth ₹158.1
↓ -0.77 ₹761 5.6 -0.7 3.2 4.1 1.9 -14.6 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 6 Dec 19
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 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 (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 1. Principal Dividend Yield Fund
CAGR/Annualized return of 11.7% since its launch. Ranked 37 in Dividend Yield category. Return for 2018 was -5.2% , 2017 was 46.6% and 2016 was 7.2% . Principal Dividend Yield Fund
Growth Launch Date 15 Oct 04 NAV (06 Dec 19) ₹53.55 ↓ -0.28 (-0.52 %) Net Assets (Cr) ₹200 on 31 Oct 19 Category Equity - Dividend Yield AMC Principal Pnb Asset Mgmt. Co. Priv. Ltd. Rating ☆☆☆ Risk Moderately High Expense Ratio 2.97 Sharpe Ratio 0.37 Information Ratio 0.04 Alpha Ratio 0.8 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 Nov 14 ₹10,000 30 Nov 15 ₹9,513 30 Nov 16 ₹10,421 30 Nov 17 ₹14,206 30 Nov 18 ₹14,029 30 Nov 19 ₹14,712 Returns for Principal Dividend Yield Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Dec 19 Duration Returns 1 Month -1.4% 3 Month 8.3% 6 Month -0.3% 1 Year 5.1% 3 Year 12.4% 5 Year 7.6% 10 Year 15 Year Since launch 11.7% Historical performance (Yearly) on absolute basis
Year Returns 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% 2009 78.5% 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 Oct 19
Equity Sector Allocation
Sector Value Consumer Defensive 19.85% Technology 18.18% Basic Materials 16.38% Financial Services 15.72% Consumer Cyclical 10.06% Energy 7.85% Utility 4.48% Industrials 4.3% Communication Services 0.75% Health Care 0.54% Asset Allocation
Asset Class Value Cash 1.9% Equity 98.1% Top Securities Holdings / Portfolio
Name Holding Value Quantity Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 30 Sep 14 | 5006969% ₹18 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% ₹11 Cr 46,710
↓ -5,190 Reliance Industries Ltd (Energy)
Equity, Since 29 Feb 12 | RELIANCE4% ₹8 Cr 57,690 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK4% ₹8 Cr 180,000 Infosys Ltd (Technology)
Equity, Since 31 Jul 15 | INFY4% ₹7 Cr 108,000 Bharat Petroleum Corp Ltd (Energy)
Equity, Since 30 Sep 18 | 5005474% ₹7 Cr 138,000 Tech Mahindra Ltd (Technology)
Equity, Since 31 Aug 18 | 5327554% ₹7 Cr 96,109 UltraTech Cement Ltd (Basic Materials)
Equity, Since 31 Jul 19 | ULTRACEMCO3% ₹7 Cr 16,800
↑ 1,500 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Aug 13 | HDFCBANK3% ₹7 Cr 53,800 2. Templeton India Equity Income Fund
CAGR/Annualized return of 11.8% since its launch. Ranked 46 in Dividend Yield category. Return for 2018 was -8.6% , 2017 was 34.1% and 2016 was 9.4% . Templeton India Equity Income Fund
Growth Launch Date 18 May 06 NAV (06 Dec 19) ₹45.4598 ↓ -0.28 (-0.62 %) Net Assets (Cr) ₹921 on 31 Oct 19 Category Equity - Dividend Yield AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 2.56 Sharpe Ratio 0.63 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 30 Nov 14 ₹10,000 30 Nov 15 ₹9,902 30 Nov 16 ₹10,734 30 Nov 17 ₹13,786 30 Nov 18 ₹12,923 30 Nov 19 ₹13,525 Returns for Templeton India Equity Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Dec 19 Duration Returns 1 Month -2.3% 3 Month 1.7% 6 Month -1.6% 1 Year 4.3% 3 Year 7.9% 5 Year 6.1% 10 Year 15 Year Since launch 11.8% Historical performance (Yearly) on absolute basis
Year Returns 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% 2009 104.2% Fund Manager information for Templeton India Equity Income Fund
Name Since Tenure Anand Radhakrishnan 1 Jan 19 0.83 Yr. Lakshmikanth Reddy 1 Jan 19 0.83 Yr. Pyari Menon 26 Sep 19 0.1 Yr. Data below for Templeton India Equity Income Fund as on 31 Oct 19
Equity Sector Allocation
Sector Value Asset Allocation
Asset Class Value Equity 96.95% Other 2.42% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Apr 13 | INFY5% ₹42 Cr 615,444 Power Grid Corp Of India Ltd (Utilities)
Equity, Since 31 Jan 19 | 5328984% ₹40 Cr 2,009,054
↑ 500,000 NTPC Ltd (Utilities)
Equity, Since 31 Jan 19 | 5325554% ₹39 Cr 3,150,145 Xinyi Solar Holdings Ltd (Technology)
Equity, Since 31 Oct 16 | 009684% ₹32 Cr 8,075,983 Tata Chemicals Ltd (Basic Materials)
Equity, Since 28 Feb 07 | 5007703% ₹30 Cr 484,134
↑ 50,000 Petronet LNG Ltd (Energy)
Equity, Since 31 Jan 19 | 5325223% ₹30 Cr 1,053,388
↑ 100,000 Tata Power Co Ltd (Utilities)
Equity, Since 30 Jun 19 | 5004003% ₹28 Cr 4,797,866
↑ 500,000 Coal India Ltd (Energy)
Equity, Since 31 Jan 14 | COALINDIA3% ₹26 Cr 1,247,000 Gujarat State Petronet Ltd (Utilities)
Equity, Since 31 Jan 19 | 5327023% ₹26 Cr 1,224,255 Finolex Industries Ltd (Industrials)
Equity, Since 31 Jan 19 | FINPIPE3% ₹25 Cr 419,757 3. ICICI Prudential Dividend Yield Equity Fund
CAGR/Annualized return of 8.3% since its launch. Ranked 38 in Dividend Yield category. Return for 2018 was -11.9% , 2017 was 40.7% and 2016 was 9.7% . ICICI Prudential Dividend Yield Equity Fund
Growth Launch Date 16 May 14 NAV (06 Dec 19) ₹15.59 ↓ -0.23 (-1.45 %) Net Assets (Cr) ₹174 on 31 Oct 19 Category Equity - Dividend Yield AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆ Risk Moderately High Expense Ratio 2.77 Sharpe Ratio -0.24 Information Ratio -0.74 Alpha Ratio -8.08 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 Nov 14 ₹10,000 30 Nov 15 ₹9,740 30 Nov 16 ₹10,679 30 Nov 17 ₹14,223 30 Nov 18 ₹12,684 30 Nov 19 ₹12,526 Returns for ICICI Prudential Dividend Yield Equity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Dec 19 Duration Returns 1 Month -3.1% 3 Month 0.5% 6 Month -7.4% 1 Year -1.1% 3 Year 5.5% 5 Year 3.9% 10 Year 15 Year Since launch 8.3% Historical performance (Yearly) on absolute basis
Year Returns 2018 -11.9% 2017 40.7% 2016 9.7% 2015 -5.2% 2014 2013 2012 2011 2010 2009 Fund Manager information for ICICI Prudential Dividend Yield Equity Fund
Name Since Tenure Mrinal Singh 16 May 14 5.46 Yr. Mittul Kalawadia 29 Jan 18 1.75 Yr. Data below for ICICI Prudential Dividend Yield Equity Fund as on 31 Oct 19
Equity Sector Allocation
Sector Value Technology 19.89% Energy 16.22% Industrials 15.49% Financial Services 11.57% Consumer Defensive 11.15% Utility 10.19% Basic Materials 8.67% Health Care 0.93% Communication Services 0.18% Asset Allocation
Asset Class Value Cash 5.19% Equity 94.29% Other 0.52% Top Securities Holdings / Portfolio
Name Holding Value Quantity NTPC Ltd (Utilities)
Equity, Since 31 Oct 16 | 5325559% ₹16 Cr 1,306,047 Gujarat Pipavav Port Ltd (Industrials)
Equity, Since 31 Mar 18 | 5332489% ₹16 Cr 1,814,575 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jul 17 | ITC9% ₹15 Cr 579,042 Infosys Ltd (Technology)
Equity, Since 31 May 14 | INFY8% ₹15 Cr 213,082
↑ 60,000 Treps
CBLO/Reverse Repo | -6% ₹10 Cr Hindustan Petroleum Corp Ltd (Energy)
Equity, Since 31 May 18 | HINDPETRO6% ₹10 Cr 301,878 Tata Chemicals Ltd (Basic Materials)
Equity, Since 31 May 14 | 5007704% ₹7 Cr 114,280 Cummins India Ltd (Industrials)
Equity, Since 31 May 14 | 5004804% ₹7 Cr 125,532 Bharat Petroleum Corp Ltd (Energy)
Equity, Since 31 May 19 | 5005473% ₹6 Cr 111,220 Indian Oil Corp Ltd (Energy)
Equity, Since 31 Dec 18 | IOC3% ₹6 Cr 398,470 4. UTI Dividend Yield Fund
CAGR/Annualized return of 13.6% since its launch. Ranked 75 in Dividend Yield category. Return for 2018 was 0.5% , 2017 was 28.5% and 2016 was 6.1% . UTI Dividend Yield Fund
Growth Launch Date 3 May 05 NAV (06 Dec 19) ₹64.5044 ↓ -0.47 (-0.73 %) Net Assets (Cr) ₹2,463 on 31 Oct 19 Category Equity - Dividend Yield AMC UTI Asset Management Company Ltd Rating ☆ Risk Moderately High Expense Ratio 2.21 Sharpe Ratio 0.44 Information Ratio -0.28 Alpha Ratio 0.99 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 Nov 14 ₹10,000 30 Nov 15 ₹9,395 30 Nov 16 ₹9,994 30 Nov 17 ₹12,381 30 Nov 18 ₹12,509 30 Nov 19 ₹13,185 Returns for UTI Dividend Yield Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Dec 19 Duration Returns 1 Month -3.6% 3 Month 2.5% 6 Month -0.8% 1 Year 4.7% 3 Year 9.5% 5 Year 5.2% 10 Year 15 Year Since launch 13.6% Historical performance (Yearly) on absolute basis
Year Returns 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% 2009 85.8% Fund Manager information for UTI Dividend Yield Fund
Name Since Tenure Swati Kulkarni 1 Dec 05 13.92 Yr. Data below for UTI Dividend Yield Fund as on 31 Oct 19
Equity Sector Allocation
Sector Value Technology 25.71% Consumer Defensive 14.28% Energy 12.52% Financial Services 12.02% Basic Materials 11.29% Utility 8.62% Industrials 4.59% Health Care 4.55% Consumer Cyclical 2.64% Communication Services 0.58% Asset Allocation
Asset Class Value Cash 3.15% Equity 96.8% Other 0.05% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Apr 08 | INFY8% ₹185 Cr 2,700,000 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 08 | TCS6% ₹149 Cr 657,000 Tech Mahindra Ltd (Technology)
Equity, Since 31 May 17 | 5327556% ₹137 Cr 1,858,500 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Sep 07 | ICICIBANK5% ₹130 Cr 2,800,000 ITC Ltd (Consumer Defensive)
Equity, Since 30 Nov 07 | ITC5% ₹120 Cr 4,662,000 Mphasis Ltd (Technology)
Equity, Since 31 Mar 14 | 5262995% ₹113 Cr 1,190,000 Bharat Petroleum Corp Ltd (Energy)
Equity, Since 30 Jun 09 | 5005473% ₹73 Cr 1,395,000 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 30 Nov 12 | 5006963% ₹72 Cr 333,000 Net Current Assets
Net Current Assets | -3% ₹68 Cr 00 GlaxoSmithKline Consumer Healthcare Ltd (Consumer Defensive)
Equity, Since 28 Feb 17 | 5006763% ₹66 Cr 72,000 5. Aditya Birla Sun Life Dividend Yield Fund
CAGR/Annualized return of 17.9% since its launch. Ranked 73 in Dividend Yield category. Return for 2018 was -14.6% , 2017 was 33.2% and 2016 was 2.6% . Aditya Birla Sun Life Dividend Yield Fund
Growth Launch Date 26 Feb 03 NAV (06 Dec 19) ₹158.1 ↓ -0.77 (-0.48 %) Net Assets (Cr) ₹761 on 31 Oct 19 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 -1.11 Alpha Ratio -2.22 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 Nov 14 ₹10,000 30 Nov 15 ₹9,571 30 Nov 16 ₹10,083 30 Nov 17 ₹12,482 30 Nov 18 ₹10,935 30 Nov 19 ₹11,263 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 6 Dec 19 Duration Returns 1 Month -0.7% 3 Month 5.6% 6 Month -0.7% 1 Year 3.2% 3 Year 4.1% 5 Year 1.9% 10 Year 15 Year Since launch 17.9% Historical performance (Yearly) on absolute basis
Year Returns 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% 2009 89.7% 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 Oct 19
Equity Sector Allocation
Sector Value Financial Services 17.83% Technology 14.55% Consumer Defensive 11.81% Basic Materials 10.82% Consumer Cyclical 9.77% Utility 9.53% Industrials 7.76% Health Care 7.08% Energy 5.73% Communication Services 3.21% Asset Allocation
Asset Class Value Cash 1.91% Equity 98.09% Other 0% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Jun 11 | INFY6% ₹43 Cr 620,000
↑ 65,000 Coal India Ltd (Energy)
Equity, Since 31 Oct 18 | COALINDIA5% ₹36 Cr 1,757,946
↑ 653,646 ITC Ltd (Consumer Defensive)
Equity, Since 28 Feb 18 | ITC3% ₹25 Cr 963,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 18 | HDFCBANK3% ₹25 Cr 200,000 Mahanagar Gas Ltd (Utilities)
Equity, Since 30 Jun 16 | MGL3% ₹23 Cr 225,635 Sanofi India Ltd (Healthcare)
Equity, Since 31 Mar 15 | 5006743% ₹22 Cr 32,431 ICICI Securities Ltd (Financial Services)
Equity, Since 30 Apr 18 | 5411793% ₹22 Cr 668,400 Orient Refractories Ltd (Industrials)
Equity, Since 31 Mar 14 | 5340763% ₹21 Cr 971,896 NTPC Ltd (Utilities)
Equity, Since 31 Dec 18 | 5325553% ₹21 Cr 1,682,400 Pfizer Ltd (Healthcare)
Equity, Since 30 Jun 07 | PFIZER3% ₹20 Cr 50,000
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