Top 10 Dividend Yield Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Principal Dividend Yield FundEquityHigh-12.4%3star188
Principal Dividend Yield FundEquityModerately High-12.4%3star188
Principal Dividend Yield FundEquityHigh-13.0%3star188
Principal Dividend Yield FundEquityModerately High-13.0%3star188
Templeton India Equity Income FundEquityModerately High-9.4%3star910
Templeton India Equity Income FundEquityModerately High-9.4%3star910
Templeton India Equity Income FundEquityModerately High-9.9%3star910
Templeton India Equity Income FundEquityModerately High-9.9%3star910
ICICI Prudential Dividend Yield Equity FundEquityModerately High-15.9%3star170
ICICI Prudential Dividend Yield Equity FundEquityModerately High-15.9%3star170
ICICI Prudential Dividend Yield Equity FundEquityModerately High-16.6%3star170
ICICI Prudential Dividend Yield Equity FundEquityModerately High-16.6%3star170
UTI Dividend Yield FundEquityModerately High-8.9%2star2,318
UTI Dividend Yield FundEquityModerately High-8.9%2star2,318
UTI Dividend Yield FundEquityModerately High-9.5%1star2,318
View All Top 10 Dividend Yield Mutual Funds

Best Divident Yield Mutual Funds

One of the major attractions of a mutual fund is the high rate of returns, like what shares yield in the form of dividends. This basic underlying concept has led to the creation of a separate subdivision of mutual funds, known as Dividend Yield Mutual Funds. Some of the best Dividend Yield Mutual Funds invest in those corporations which have significantly high dividend-yielding stocks.

This makes it possible for the fund managers to extract the maximum value out of their investments. Dividend yield Mutual Funds are meant primarily for individuals who are risk-averse and prefer not to expose themselves to prevalent market risks even for better profits. Given that dividends are almost always associated with organizations of proven value, the best dividend funds are almost always assured of high returns in the future.

Dividend Yield Mutual Funds do not have the market volatility which characterizes large cap and small cap mutual funds. Besides, these funds almost always perform better than standard large and mid-cap mutual funds currently available. That means even if the investor is risk-averse, they can choose to invest in these schemes due to the high returns.

These mutual funds are the best available options for those looking to invest in the Equity Markets. Based on asset allocation, these Mutual Funds can be divided into 2 categories –

1.Dividend Yielding Mutual Funds (Equity.)

2.Dividend Yielding Mutual Funds (Debt.)

If the scheme allocates more than 65% of its assets in equity Class, it will naturally have slightly better returns and will be classified as dividend yielding mutual funds (Equity). The other funds feature in the debt segment. These 2 categories also differ in some minor taxation issues too.

Let's have a closer look

Now let us jump and check about these top 10 mutual fund schemes.

Principal Dividend Yield Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Dividend Yield segment and provided 8.06% annualized returns in the last 3 years. In the last 1 year, it gave -12.36% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -12.36% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM188Cr
1Y Returns-12.4%

Principal Dividend Yield Fund Direct Dividend Half Yearly

Fund Performance: This fund has consistently beaten its benchmark in Dividend Yield segment and provided 8.06% annualized returns in the last 3 years. In the last 1 year, it gave -12.36% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -12.36% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹2,000. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM188Cr
1Y Returns-12.4%

Principal Dividend Yield Fund Growth

Fund Performance: This fund has consistently beaten its benchmark in Dividend Yield segment and provided 7.52% annualized returns in the last 3 years. In the last 1 year, it gave -13.04% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -13.04% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM188Cr
1Y Returns-13.0%

Principal Dividend Yield Fund Dividend Half Yearly

Fund Performance: This fund has consistently beaten its benchmark in Dividend Yield segment and provided 7.52% annualized returns in the last 3 years. In the last 1 year, it gave -13.04% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -13.04% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM188Cr
1Y Returns-13.0%

Templeton India Equity Income Direct Plan Growth

Fund Performance: This fund has consistently beaten its benchmark in Dividend Yield segment and provided 6.76% annualized returns in the last 3 years. In the last 1 year, it gave -9.38% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -9.38% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM910Cr
1Y Returns-9.4%

Templeton India Equity Income Direct Plan Dividend

Fund Performance: This fund has consistently beaten its benchmark in Dividend Yield segment and provided 6.76% annualized returns in the last 3 years. In the last 1 year, it gave -9.38% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -9.38% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM910Cr
1Y Returns-9.4%

Templeton India Equity Income Fund Dividend

Fund Performance: This fund has consistently beaten its benchmark in Dividend Yield segment and provided 6.05% annualized returns in the last 3 years. In the last 1 year, it gave -9.93% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -9.93% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM910Cr
1Y Returns-9.9%

Templeton India Equity Income Fund Growth

Fund Performance: This fund has consistently beaten its benchmark in Dividend Yield segment and provided 6.05% annualized returns in the last 3 years. In the last 1 year, it gave -9.93% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -9.93% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM910Cr
1Y Returns-9.9%

ICICI Prudential Dividend Yield Equity Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Dividend Yield segment and provided 3.87% annualized returns in the last 3 years. In the last 1 year, it gave -15.92% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -15.92% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹100. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM170Cr
1Y Returns-15.9%

ICICI Prudential Dividend Yield Equity Fund Direct Dividend

Fund Performance: This fund has consistently beaten its benchmark in Dividend Yield segment and provided 3.87% annualized returns in the last 3 years. In the last 1 year, it gave -15.92% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -15.92% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹100. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM170Cr
1Y Returns-15.9%

ICICI Prudential Dividend Yield Equity Fund Growth

Fund Performance: This fund has consistently beaten its benchmark in Dividend Yield segment and provided 3.1% annualized returns in the last 3 years. In the last 1 year, it gave -16.58% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -16.58% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹100. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM170Cr
1Y Returns-16.6%

ICICI Prudential Dividend Yield Equity Fund Dividend

Fund Performance: This fund has consistently beaten its benchmark in Dividend Yield segment and provided 3.1% annualized returns in the last 3 years. In the last 1 year, it gave -16.58% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -16.58% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹100. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM170Cr
1Y Returns-16.6%

UTI Dividend Yield Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Dividend Yield segment and provided 7.08% annualized returns in the last 3 years. In the last 1 year, it gave -8.95% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -8.95% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM2,318Cr
1Y Returns-8.9%

UTI Dividend Yield Fund Direct Dividend

Fund Performance: This fund has consistently beaten its benchmark in Dividend Yield segment and provided 7.08% annualized returns in the last 3 years. In the last 1 year, it gave -8.95% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -8.95% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM2,318Cr
1Y Returns-8.9%

UTI Dividend Yield Fund Regular Plan Growth

Fund Performance: This fund has consistently beaten its benchmark in Dividend Yield segment and provided 6.41% annualized returns in the last 3 years. In the last 1 year, it gave -9.52% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -9.52% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM2,318Cr
1Y Returns-9.5%

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Features of Dividend Yield Mutual Fund

<p>Of course, the primary purpose of such schemes is to create extra wealth for the investor. That said, there are certain specific purposes which a dividend yielding MF fulfils. They are:-</p> <ul> <li>They provide a significantly better yield on investments in the long run mainly because the managers of the <strong>best dividend yield Mutual Funds</strong> include only Blue Chip stocks which have a proven history of financial excellence.</li> <li>Some of the <strong>best dividend yield funds</strong> are those which place their bets on firms known to pay large sums as dividends. Specific risk managers control these assets and they organically generate a large return quarter upon quarter.</li> <li>Most of the <strong>best Dividend Yield Mutual Funds of 2019</strong> are designed to act as minimal-risk investment routes for limited periods. It is an excellent step for the first-time investor to carry out the best financial practices.</li> <li>These Mutual Funds are meant to also aid the potential investor spread out his MF portfolio in the market. It enables all-round investment and risk assessment on a wider scale as well.</li> </ul>

Taxability

<p>One of the reasons why these mutual fund plans have become so popular is their partial tax-exempt nature. The Government of India has decided to introduce sweeping tax reforms to enable more people to invest in mutual funds . There is however a Dividend Distribution Tax in place for all organisations which pay a dividend to their shareholders.</p> <p>This is a boon in disguise for all dividend yielding Mutual Funds. They do not have to pay any tax for incomes or wealth creation of up to Rs 10 Lakh. Once it crosses the Rs 10 Lakh limit, there is a provision for 10% tax deduction.</p> <p>There are no provisions for any Capital Gains tax in this instance.</p>

Who Are These Funds Suited For?

<p>Anyone who has a low risk appetite should always go for any scheme of this nature. New investors, who are uncertain of which way they should proceed, and who are careful when taking on risk, are also likely to benefit from these mutual funds.</p> <p>Every investor, whether in their personal capacity or in a partnership, has differing criteria of availing the best dividend yield funds available in the market. But with a range of such plans in circulation, most investors will find it an ideal investment avenue.</p> <p>Lastly, anyone who does not wish to wait for higher returns by investing in a High Cap Mutual Fund can also choose these schemes.</p>

Major Advantages

<p>Several advantages adorn the best dividend yield plans. Some of them are –</p> <ul> <li>High returns in shorter timespans.</li> <li>A very marginal level of associated risk enables even reclusive investors.</li> <li>High tax-exemption threshold.</li> <li>The chance to pick the right Mutual Fund thanks to a multiplicity of offers available.</li> <li>The advantage of availing dividend-linked tax rebates is also an attraction.</li> </ul>

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