Mutual funds that gave exceptional dividend yields in FY18.

Mutual fund investors who are more concerned about regular income usually choose the dividend option. In the dividend option, investors receive returns in a periodic manner. The dividends are the distribution of the gains and profits made by the schemes. The dividends are calculated on the basis of distributable surplus, which is surplus over and above the face value and unrealised gains of the scheme.

Many mutual fund investors believe more on the balanced schemes to receive a regular income. However, pure equity funds too allow a greater dividend yield, the dividends from these schemes are may be half yearly or quarterly. In order to analyse the dividend yield from both balanced and equity funds, we tried to analyse various schemes among these categories to find out which are the top balanced as well as pure equity schemes which offered higher dividend yield during the fiscal year 2018. Dividend yield is determined by dividing the sum of dividends paid during the period by its current NAV.

According to our data analysis, below mentioned equity and balanced schemes have given the exceptional dividend yields in the last financial year.

If you observe the dividend yields from equity funds, they seem quiet higher than that of the balance funds. This difference in the dividend yield between balanced schemes and equity schemes is because in most of the equity mutual fund schemes, dividend is paid out of your investment rather than any capital appreciation by the equity fund. Hence, before investing in any equity schemes that is paying higher dividend, check if it is distributing profits generated due to capital appreciation or just paying your money back.