Prime Dividend Paying Mutual Funds: Some traders are looking out for an everyday earnings stream from their investments together with capital appreciation. They both go for top dividend-yield corporations or dividend-paying mutual funds. Whereas the universe of high-dividend shares is well-known, on this article we’ll focus on high dividend paying mutual funds.
Prime Dividend Paying Mutual Funds
For placing collectively an inventory of the highest Dividend Paying mutual funds, we in contrast the funds throughout key parameters similar to 3-yr annualized returns, expense ratios, belongings below administration, and extra. With out additional ado, allow us to bounce in.
Prime Dividend Paying Mutual Funds #1 – HDFC Dividend Yield Fund
HDFC Dividend Yield Fund is the most important dividend-paying mutual fund with an AUM of Rs 3,015 crore. It was launched in December 2020 and has grown quick within the final two years. It’s being managed by Mr. Gopal Agrawal since its inception. He holds greater than 17 years of labor expertise in asset administration and a couple of years in inventory analysis.
The fund owns 72 shares in its portfolio with the highest ten corporations accounting for 40.87% of the whole belongings owned. The fund’s 3-yr return information isn’t out there though. However, its efficiency has been spectacular with a 13.18% return for its traders within the final 12 months.
The expense ratio of the direct plan of the HDFC Dividend Yield Fund stands at 0.44%. Its high three holdings are ITC (5.67%), Infosys (5.09%), and Hindustan Unilever (4.96%). Among the many high dividend-paying funds, it has the best allocation of 99.37% of its funds into shares.
Prime Dividend Paying Mutual Funds #2 – UTI Dividend Yield Fund
From the home of UTI Asset Administration Firm, UTI Dividend Yield Mutual Fund is the second-largest dividend-paying mutual fund on this listing. It began 18 years in the past in Could 2005.
Mr. Amit Premchandani serves because the fund supervisor for the fund together with three different mutual funds of UTI AMC. He has been related to the corporate since 2009 and holds a CFA constitution from CFA Institute and CA constitution from ICAI.
It’s an open-ended fairness scheme. The fund has delivered an annualized return of 18.70% yearly within the final three years to its traders. Its expense ratio stands at 1.45%.
This fund holds some 47 shares in its portfolio with the highest ten shares accounting for 48.87% of the whole belongings of the fund. Infosys (8.15%), ITC (6.24%), and NTPC (6.01%) are the three largest fairness holdings of the UTI Dividend Yield Fund.
Prime Dividend Paying Mutual Funds #3 – Templeton India Fairness Earnings Direct Plan
Templeton India Fairness Earnings Direct Plan is one other high dividend-paying mutual fund in our listing with a protracted historical past of operation. It was arrange in Could 2006. The fund presently has belongings below administration of Rs 1,354 crore.
It has returned a formidable 27% CAGR beneficial properties to its traders over the past three years. In a single yr, the fund has given a return of 9.06% to the traders.
The fund is below the stewardship of Anand Radhakrishnan, Rajasa Kakulavarapu & Sandeep Manam. It’s appropriate for traders trying to construct a retirement corpus, schooling corpus, or odd long-term wealth creation.
It presently has 40 inventory holdings with 42.32% belongings within the ten largest fairness investments. Total, the fund’s publicity to fairness stands at 95.17% of its complete belongings with Infosys (5.66%), Energy Grid Corp (5.60%), and NTPC (4.80%) as the best three.
Prime Dividend Paying Mutual Funds #4 – ICICI Prudential Dividend Yield Fairness Fund
ICICI Prudential Dividend Yield Fairness Fund is the best-performing fund in our listing of the highest dividend yield funds. It has given a whopping 28.21% annualized return to its traders over the past three years. The one-year return can be good at 13.64%.
The fund instructions Rs 1,239 crore as belongings below administration with 91.97% of that invested in shares. Infosys (7.04%), ICICI Financial institution (6.63%), and Solar Prescription drugs (6.44%) are the three largest fairness investments of the fund among the many 45 shares held.
The expense ratio of the fund is 0.66% for the direct plan.
The fund is managed by Mittul Kalawadia who has 13 years of expertise within the business. He oversees three funds in complete, the opposite two are ICICI Prudential Fairness & Debt Fund and ICICI Prudential ESG Fund.
Prime Dividend Paying Mutual Funds #5 – Aditya Birla Solar Life Dividend Yield Fund
Managed by Mr. Dhaval Gala & Mr. Dhaval Joshi. Aditya Birla Solar Life Dividend Yield Fund is an open-ended dividend yield fund with belongings below administration of Rs 874 crore. They each have 15 years of labor expertise in fairness analysis, capital markets, and investments.
It’s the oldest fund on our listing with its inception courting again to February 27, 2003. The fund’s expense ratio is barely increased at 1.70% for its direct plan with a 0 exit load after 1-year redemption.
It has returned 20.87% CAGR return to its traders over the earlier three years with an 11.53% return within the final 12 months. The fund owns a complete of 56 shares within the portfolio accounting for 96.91% of its complete belongings.
Checklist of Prime Dividend Paying Mutual Funds
The desk beneath summarises our findings on the highest dividend-paying mutual funds.
Fund nameSize (AUM in Rs Cr)3-yr return (annualised)1-yr returnExpense ratioTop 3 holdingsAssets in Prime 10 Holdings (%)#Shares HeldStock Allocation (%)Inception Date
HDFC Dividend Yield Fund3,015NA13.180.44percentITC (5.67%), Infosys (5.09%) & HUL (4.96%)40.877299.37December 18, 2020
Tata Dividend Yield Fund479NA6.740.76percentTCS (5.48%), Infosys (5.24%) & ICICI Financial institution (5.18%)40.594997.42May 20, 2021
ICICI Prudential Dividend Yield Fairness Fund1,23928.2113.640.66percentInfosys (7.04%), ICICI Financial institution (6.63%) & Solar Prescription drugs (6.44%)51.624591.97May 16, 2014
Templeton India Fairness Earnings Direct Plan1,35427.009.061.52percentInfosys (5.66%), Energy Grid Corp (5.60%) & NTPC (4.80%)42.324095.17May 18, 2006
Aditya Birla Solar Life Dividend Yield Fund87420.8711.531.70percentInfosys (6.64%), ITC (5.85%) & NTPC (3.61%)38.175696.91February 27, 2003
Sundaram Dividend Yield Fund37418.909.001.02percentInfosys (5.82%), HDFC Financial institution (5.31%) & NTPC (4.58%)39.75292.26January, 2013
UTI Dividend Yield Fund2,82118.702.051.45percentInfosys (8.15%), ITC (6.24%) & NTPC (6.01%)48.874797.91May 3, 2005
In Conclusion
We seemed on the high dividend paying mutual funds in India above. They’re of various sizes and differ throughout their three-year performances. Nevertheless, traders should remember the fact that previous efficiency doesn’t assure future returns. Moreover, they need to fastidiously scrutinize the scheme paperwork earlier than investing resolution.
In your opinion, are these dividend-paying mutual funds a greater various to IDCW plans? How about you tell us within the feedback beneath?
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Vikalp Mishra is a commerce graduate from the College of Delhi. He likes to jot down on finance, cash and enterprise. He’s a voracious reader with a real curiosity in investing. Drop him a mail at [email protected].
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