Reap regular rewards: Top dividend yield mutual funds in India for 1-year returns
The article discusses the potential of dividend yield mutual funds as a means of regular investment income.
Ever wished your investments could pay you regularly, like a salary? Look no further than dividend-yield mutual funds! This article dives deep into these wealth-generating funds, explores their investment strategies, and helps you decide if they're the perfect fit for your financial goals.
What are Dividend Yield Mutual Funds?
Imagine a mutual fund that showers you with a portion of its profits regularly. That's the magic of dividend yield funds! These funds invest primarily in companies with a history of paying out consistent dividends – a portion of their earnings – to shareholders. This translates to a regular stream of income for you, the investor.
Unlocking the Investment Strategy:
Dividend yield funds typically focus on established, mature companies in sectors known for their stable dividend payouts. These sectors often include utilities, consumer staples, and financials. The fund manager carefully selects these companies based on factors like their dividend history, financial health, and growth potential. By strategically allocating your investment across such companies, dividend yield funds aim to provide you with a steady stream of income alongside potential capital appreciation in the long run.
Who Should Consider Dividend Yield Funds?
These funds are particularly attractive for investors seeking:
Regular Income: Dividend yield funds are a great option for retirees or individuals seeking a steady flow of income to supplement their regular earnings.
Long-Term Goals: These funds are well-suited for investors with long-term financial goals, as they offer the potential for capital appreciation alongside regular dividend payouts.
Income Reinvestment: You can choose to reinvest your dividends back into the fund, allowing your wealth to compound over time.
Top Performers: 1-Year Return Leaders
|
Scheme Name
|
Benchmark
|
Riskometer Scheme
|
NAV Date
|
NAV Direct
|
Return 1 Year (%) Direct
|
Return Since Launch Direct
|
Daily AUM (Cr.)
|
|
HDFC Dividend Yield Fund
|
NIFTY 500 Total Return Index
|
Very High
|
2024-04-05
|
23.72
|
49.29
|
29.92
|
4,813.69
|
|
ICICI Prudential Dividend Yield Equity Fund
|
NIFTY 500 Total Return Index
|
Very High
|
2024-04-05
|
50.01
|
56.62
|
17.66
|
3,498.77
|
|
LIC MF Dividend Yield Fund
|
NIFTY 500 Total Return Index
|
Very High
|
2024-04-05
|
27.47
|
54.34
|
21.89
|
133.94
|
|
SBI Dividend Yield Fund
|
NIFTY 500 Total Return Index
|
|
2024-04-05
|
13.98
|
36.62
|
37.01
|
7,107.94
|
|
Sundaram Dividend Yield Fund
|
NIFTY 500 Total Return Index
|
Very High
|
2024-04-05
|
135.61
|
47.57
|
15.53
|
841.00
|
|
Tata Dividend Yield Fund
|
NIFTY 500 Total Return Index
|
Very High
|
2024-04-05
|
17.27
|
48.93
|
20.90
|
828.09
|
|
UTI Dividend Yield Fund
|
NIFTY 500 Total Return Index
|
Very High
|
2024-04-05
|
159.56
|
45.43
|
14.40
|
3,659.27
|
Dividend yield funds offer a unique blend of income generation and capital appreciation potential. By understanding their investment strategy and suitability, you can leverage these funds to achieve your long-term financial goals. So, are you ready to reap regular rewards from your investments? Consider exploring dividend yield mutual funds and unlock a world of consistent income!
Disclaimer: The article is for informational purposes only and not an investment advice.