
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.
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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Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) ICICI Prudential Dividend Yield Equity Fund Growth  ₹55.21  
 ↑ 0.41 ₹5,779 6 9.2 7.9 24.3 30.4 21 UTI Dividend Yield Fund Growth  ₹181.667  
 ↑ 0.80 ₹3,794 3.6 7.7 2 21.2 22.3 24.7 Aditya Birla Sun Life Dividend Yield Fund Growth  ₹450.87  
 ↓ -1.54 ₹1,432 3.5 7 -2.2 19.9 22.6 18.2 Templeton India Equity Income Fund Growth  ₹139.813  
 ↓ -0.55 ₹2,317 2.7 3.4 -1.1 18.4 24.2 20.4 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Oct 25   Research Highlights & Commentary of 4 Funds showcased
Commentary ICICI Prudential Dividend Yield Equity Fund UTI Dividend Yield Fund Aditya Birla Sun Life Dividend Yield Fund Templeton India Equity Income Fund Point 1 Highest AUM (₹5,779 Cr). Upper mid AUM (₹3,794 Cr). Bottom quartile AUM (₹1,432 Cr). Lower mid AUM (₹2,317 Cr). Point 2 Established history (11+ yrs). Established history (20+ yrs). Oldest track record among peers (22 yrs). Established history (19+ yrs). Point 3 Top rated. Rating: 1★ (lower mid). Rating: 1★ (bottom quartile). Rating: 3★ (upper mid). Point 4 Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Point 5 5Y return: 30.35% (top quartile). 5Y return: 22.29% (bottom quartile). 5Y return: 22.62% (lower mid). 5Y return: 24.24% (upper mid). Point 6 3Y return: 24.28% (top quartile). 3Y return: 21.20% (upper mid). 3Y return: 19.93% (lower mid). 3Y return: 18.43% (bottom quartile). Point 7 1Y return: 7.94% (top quartile). 1Y return: 1.99% (upper mid). 1Y return: -2.20% (bottom quartile). 1Y return: -1.11% (lower mid). Point 8 Alpha: 0.21 (top quartile). Alpha: -4.47 (upper mid). Alpha: -8.77 (lower mid). Alpha: -11.18 (bottom quartile). Point 9 Sharpe: -0.57 (top quartile). Sharpe: -0.93 (upper mid). Sharpe: -1.19 (lower mid). Sharpe: -1.65 (bottom quartile). Point 10 Information ratio: 1.64 (top quartile). Information ratio: 0.84 (upper mid). Information ratio: 0.76 (lower mid). Information ratio: 0.18 (bottom quartile). ICICI Prudential Dividend Yield Equity Fund
UTI Dividend Yield Fund
Aditya Birla Sun Life Dividend Yield Fund
Templeton India Equity Income Fund
Assets >= 100 Crore & Sorted on 3 Year CAGR Returns.
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 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   Research Highlights for ICICI Prudential Dividend Yield Equity Fund   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.   Research Highlights for UTI Dividend Yield Fund   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.   Research Highlights for Aditya Birla Sun Life Dividend Yield Fund   Below is the key information for Aditya Birla Sun Life 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.   Research Highlights for Templeton India Equity Income Fund   Below is the key information for Templeton India Equity Income Fund   Returns up to 1 year are on 1. ICICI Prudential Dividend Yield Equity Fund
ICICI Prudential Dividend Yield Equity Fund 
 Growth Launch Date   16 May 14  NAV (29 Oct 25)   ₹55.21  ↑ 0.41   (0.75 %)  Net Assets (Cr)   ₹5,779 on 31 Aug 25  Category  Equity - Dividend Yield AMC   ICICI Prudential Asset Management Company Limited  Rating  ☆☆☆ Risk  Moderately High Expense Ratio  1.86 Sharpe Ratio  -0.57 Information Ratio  1.64 Alpha Ratio  0.21 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 Sep 20 ₹10,000 30 Sep 21 ₹17,694 30 Sep 22 ₹18,607 30 Sep 23 ₹23,915 30 Sep 24 ₹36,721 30 Sep 25 ₹35,524  Returns for ICICI Prudential Dividend Yield Equity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Oct 25 Duration Returns 1 Month  5%  3 Month  6%  6 Month  9.2%  1 Year  7.9%  3 Year  24.3%  5 Year  30.4%  10 Year    15 Year    Since launch  16.1%   Historical performance (Yearly) on absolute basis 
Year Returns 2024  21%  2023  38.8%  2022  9.2%  2021  47.1%  2020  14.1%  2019  -2.9%  2018  -11.9%  2017  40.7%  2016  9.7%  2015  -5.2%   Fund Manager information for ICICI Prudential Dividend Yield Equity Fund 
Name Since Tenure Mittul Kalawadia 29 Jan 18 7.68 Yr. Sharmila D’mello 31 Jul 22 3.17 Yr. Data below for ICICI Prudential Dividend Yield Equity Fund as on 31 Aug 25 
 Equity Sector Allocation 
Sector Value Financial Services 26.77% Energy 11.25% Consumer Cyclical 8.26% Utility 7.44% Basic Materials 7.37% Industrials 7.07% Communication Services 6.09% Health Care 5.58% Consumer Defensive 5.29% Technology 4.95% Real Estate 2.66%  Asset Allocation 
Asset Class Value Cash 6.98% Equity 92.72% Debt 0.3%  Top Securities Holdings / Portfolio 
Name Holding Value Quantity  ICICI Bank Ltd (Financial Services) 
Equity, Since 30 Apr 21 | ICICIBANK6% ₹384 Cr 2,847,084  NTPC Ltd (Utilities) 
Equity, Since 31 Oct 16 | 5325556% ₹369 Cr 10,849,394  HDFC Bank Ltd (Financial Services) 
Equity, Since 31 Jan 22 | HDFCBANK6% ₹344 Cr 3,616,948  Axis Bank Ltd (Financial Services) 
Equity, Since 30 Apr 21 | 5322156% ₹344 Cr 3,039,180  Sun Pharmaceuticals Industries Ltd (Healthcare) 
Equity, Since 30 Apr 21 | SUNPHARMA5% ₹321 Cr 2,013,986  Maruti Suzuki India Ltd (Consumer Cyclical) 
Equity, Since 31 Jan 22 | MARUTI5% ₹278 Cr 173,510 
 ↓ -30,000  Larsen & Toubro Ltd (Industrials) 
Equity, Since 31 Aug 21 | LT4% ₹240 Cr 657,138  Oil & Natural Gas Corp Ltd (Energy) 
Equity, Since 31 Dec 21 | 5003124% ₹222 Cr 9,268,322  Bharti Airtel Ltd (Communication Services) 
Equity, Since 31 Jan 20 | BHARTIARTL4% ₹213 Cr 1,131,395  Reliance Industries Ltd (Energy) 
Equity, Since 31 Mar 25 | RELIANCE3% ₹192 Cr 1,404,764 
 ↑ 177,107 2. UTI Dividend Yield Fund
UTI Dividend Yield Fund 
 Growth Launch Date   3 May 05  NAV (29 Oct 25)   ₹181.667  ↑ 0.80   (0.44 %)  Net Assets (Cr)   ₹3,794 on 31 Aug 25  Category  Equity - Dividend Yield AMC   UTI Asset Management Company Ltd  Rating  ☆ Risk  Moderately High Expense Ratio  1.99 Sharpe Ratio  -0.93 Information Ratio  0.84 Alpha Ratio  -4.47 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 Sep 20 ₹10,000 30 Sep 21 ₹16,441 30 Sep 22 ₹15,141 30 Sep 23 ₹18,666 30 Sep 24 ₹28,527 30 Sep 25 ₹26,424  Returns for UTI Dividend Yield Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Oct 25 Duration Returns 1 Month  4.3%  3 Month  3.6%  6 Month  7.7%  1 Year  2%  3 Year  21.2%  5 Year  22.3%  10 Year    15 Year    Since launch  15.2%   Historical performance (Yearly) on absolute basis 
Year Returns 2024  24.7%  2023  35.4%  2022  -5.3%  2021  38.8%  2020  18.9%  2019  3.3%  2018  0.5%  2017  28.5%  2016  6.1%  2015  -5.1%   Fund Manager information for UTI Dividend Yield Fund 
Name Since Tenure Amit Premchandani 16 Nov 22 2.88 Yr. Data below for UTI Dividend Yield Fund as on 31 Aug 25 
 Equity Sector Allocation 
Sector Value Financial Services 26.28% Technology 13.29% Consumer Cyclical 12.42% Health Care 9.07% Consumer Defensive 7.04% Industrials 6.65% Energy 6.32% Utility 5.89% Real Estate 4.27% Basic Materials 3.96% Communication Services 3.5%  Asset Allocation 
Asset Class Value Cash 0.76% Equity 98.7% Debt 0.54%  Top Securities Holdings / Portfolio 
Name Holding Value Quantity  HDFC Bank Ltd (Financial Services) 
Equity, Since 31 May 12 | HDFCBANK9% ₹345 Cr 3,625,000 
 ↑ 25,000  ICICI Bank Ltd (Financial Services) 
Equity, Since 30 Sep 07 | ICICIBANK5% ₹195 Cr 1,450,000  Kotak Mahindra Bank Ltd (Financial Services) 
Equity, Since 31 Dec 23 | KOTAKBANK3% ₹130 Cr 650,000 
 ↑ 25,000  Tech Mahindra Ltd (Technology) 
Equity, Since 31 May 17 | 5327553% ₹127 Cr 910,000  Infosys Ltd (Technology) 
Equity, Since 30 Apr 08 | INFY3% ₹124 Cr 860,000  State Bank of India (Financial Services) 
Equity, Since 31 Mar 23 | SBIN3% ₹122 Cr 1,400,000  Mahindra & Mahindra Ltd (Consumer Cyclical) 
Equity, Since 30 Jun 23 | M&M3% ₹119 Cr 347,678 
 ↓ -2,322  Bharti Airtel Ltd (Communication Services) 
Equity, Since 31 Aug 24 | BHARTIARTL3% ₹107 Cr 570,000  Knowledge Realty Trust Units (Real Estate) 
-, Since 31 Aug 25 | 5444813% ₹101 Cr 8,717,059  Power Grid Corp Of India Ltd (Utilities) 
Equity, Since 30 Apr 24 | 5328982% ₹90 Cr 3,200,000 3. Aditya Birla Sun Life Dividend Yield Fund
Aditya Birla Sun Life Dividend Yield Fund 
 Growth Launch Date   26 Feb 03  NAV (28 Oct 25)   ₹450.87  ↓ -1.54   (-0.34 %)  Net Assets (Cr)   ₹1,432 on 31 Aug 25  Category  Equity - Dividend Yield AMC   Birla Sun Life Asset Management Co Ltd  Rating  ☆ Risk  Moderately High Expense Ratio  2.21 Sharpe Ratio  -1.19 Information Ratio  0.76 Alpha Ratio  -8.77 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 Sep 20 ₹10,000 30 Sep 21 ₹15,633 30 Sep 22 ₹15,445 30 Sep 23 ₹20,296 30 Sep 24 ₹30,683 30 Sep 25 ₹26,946  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 29 Oct 25 Duration Returns 1 Month  4.3%  3 Month  3.5%  6 Month  7%  1 Year  -2.2%  3 Year  19.9%  5 Year  22.6%  10 Year    15 Year    Since launch  18.3%   Historical performance (Yearly) on absolute basis 
Year Returns 2024  18.2%  2023  40.3%  2022  5.2%  2021  36.2%  2020  16.1%  2019  3.5%  2018  -14.6%  2017  33.2%  2016  2.6%  2015  -5.5%   Fund Manager information for Aditya Birla Sun Life Dividend Yield Fund 
Name Since Tenure Dhaval Gala 1 Apr 22 3.5 Yr. Data below for Aditya Birla Sun Life Dividend Yield Fund as on 31 Aug 25 
 Equity Sector Allocation 
Sector Value Financial Services 22.22% Technology 16.29% Consumer Defensive 16.18% Utility 9.49% Consumer Cyclical 8.83% Basic Materials 6.91% Industrials 6.59% Energy 6.44% Health Care 2.15% Real Estate 1.07% Communication Services 1.06%  Asset Allocation 
Asset Class Value Cash 2.77% Equity 97.23%  Top Securities Holdings / Portfolio 
Name Holding Value Quantity  ITC Ltd (Consumer Defensive) 
Equity, Since 28 Feb 18 | ITC5% ₹79 Cr 1,963,169  Infosys Ltd (Technology) 
Equity, Since 30 Jun 11 | INFY5% ₹73 Cr 503,745  Hindustan Unilever Ltd (Consumer Defensive) 
Equity, Since 30 Nov 21 | HINDUNILVR5% ₹71 Cr 281,062  NTPC Ltd (Utilities) 
Equity, Since 31 Dec 18 | 5325555% ₹66 Cr 1,932,249  State Bank of India (Financial Services) 
Equity, Since 31 Jul 22 | SBIN4% ₹59 Cr 671,696  Multi Commodity Exchange of India Ltd (Financial Services) 
Equity, Since 31 Dec 14 | MCX3% ₹45 Cr 58,328  Tech Mahindra Ltd (Technology) 
Equity, Since 31 Oct 18 | 5327553% ₹45 Cr 321,469  Bharat Electronics Ltd (Industrials) 
Equity, Since 28 Feb 18 | BEL3% ₹41 Cr 1,019,949  Hero MotoCorp Ltd (Consumer Cyclical) 
Equity, Since 31 Jan 22 | HEROMOTOCO3% ₹37 Cr 68,161  Britannia Industries Ltd (Consumer Defensive) 
Equity, Since 30 Sep 21 | 5008253% ₹37 Cr 61,890 4. Templeton India Equity Income Fund
Templeton India Equity Income Fund 
 Growth Launch Date   18 May 06  NAV (28 Oct 25)   ₹139.813  ↓ -0.55   (-0.39 %)  Net Assets (Cr)   ₹2,317 on 31 Aug 25  Category  Equity - Dividend Yield AMC   Franklin Templeton Asst Mgmt(IND)Pvt Ltd  Rating  ☆☆☆ Risk  Moderately High Expense Ratio  2.09 Sharpe Ratio  -1.65 Information Ratio  0.18 Alpha Ratio  -11.18 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 Sep 20 ₹10,000 30 Sep 21 ₹17,224 30 Sep 22 ₹17,627 30 Sep 23 ₹21,588 30 Sep 24 ₹32,787 30 Sep 25 ₹29,600  Returns for Templeton India Equity Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Oct 25 Duration Returns 1 Month  3.3%  3 Month  2.7%  6 Month  3.4%  1 Year  -1.1%  3 Year  18.4%  5 Year  24.2%  10 Year    15 Year    Since launch  14.5%   Historical performance (Yearly) on absolute basis 
Year Returns 2024  20.4%  2023  33.3%  2022  5.3%  2021  43.1%  2020  22.9%  2019  5.3%  2018  -8.6%  2017  34.1%  2016  9.4%  2015  -1.6%   Fund Manager information for Templeton India Equity Income Fund 
Name Since Tenure Ajay Argal 1 Dec 23 1.84 Yr. Sandeep Manam 18 Oct 21 3.96 Yr. Rajasa Kakulavarapu 6 Sep 21 4.07 Yr. Data below for Templeton India Equity Income Fund as on 31 Aug 25 
 Equity Sector Allocation 
Sector Value Utility 18.98% Technology 13.46% Energy 11.86% Real Estate 10.57% Consumer Defensive 9.86% Financial Services 9.44% Consumer Cyclical 6.23% Industrials 5.88% Basic Materials 5.13% Communication Services 2.16%  Asset Allocation 
Asset Class Value Cash 6.43% Equity 93.56% Other 0.01%  Top Securities Holdings / Portfolio 
Name Holding Value Quantity  NTPC Ltd (Utilities) 
Equity, Since 31 Jan 19 | 5325555% ₹123 Cr 3,600,000  HDFC Bank Ltd (Financial Services) 
Equity, Since 31 Jul 23 | HDFCBANK5% ₹108 Cr 1,140,000  GAIL (India) Ltd (Utilities) 
Equity, Since 31 Jan 19 | 5321554% ₹102 Cr 5,800,000  Infosys Ltd (Technology) 
Equity, Since 30 Apr 13 | INFY4% ₹99 Cr 686,814  Embassy Office Parks REIT (Real Estate) 
-, Since 30 Apr 25 | EMBASSY4% ₹99 Cr 2,335,000  HCL Technologies Ltd (Technology) 
Equity, Since 31 Jan 22 | HCLTECH4% ₹89 Cr 640,932  Oil & Natural Gas Corp Ltd (Energy) 
Equity, Since 28 Feb 07 | 5003124% ₹84 Cr 3,500,000  ITC Ltd (Consumer Defensive) 
Equity, Since 30 Sep 21 | ITC4% ₹82 Cr 2,050,000  NHPC Ltd (Utilities) 
Equity, Since 31 Mar 20 | NHPC3% ₹69 Cr 8,000,000 
 ↓ -5,500,000  Bharat Electronics Ltd (Industrials) 
Equity, Since 30 Sep 19 | BEL3% ₹69 Cr 1,700,000 
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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.
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.
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.
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.   
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.
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.
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.
Good information.. Should I invest in hdfc dividend yield fund whose nfo is open till 11th