Dividend Paying Mutual Funds – Typically, these mutual funds (i) invest in stocks, and; (ii) follow a strategy of investing in stocks that generate a higher dividend yield.

When are Dividends paid to Investors?

Mutual fund schemes declare dividends for its unit holders, traditionally at the end of the financial year, from realised profits in their portfolio.

Suitable for – Dividend paying mutual funds are ideal for investors with lower risk appetite and who wish to receive regular pay-outs as a source of income.

Impact on NAV – Dividends are paid out of the profits and distributable surplus accumulated by the fund over the years. The dividends are at the discretion of the fund house and may become erratic depending on the fund’s performance which is linked to the market. Also, since dividends are paid out of profits, it reduces the NAV of the fund to that extent.

Below we have compiled a list of top Dividend Paying Mutual Funds in each categories – Equity and Debt

(Mutual Funds are ranked based on 3 years return; RETURNS ARE ANNUALISED)

NOTE: None of these are a recommendation; the author believes that a good replacement to the best mutual fund (dividend) option in current market will be via an STP from a fund with low equity exposure or an equity and debt fund. Neither of which are listed below.

Equity Fund – Large, Multi Cap and Value
1 Year 3 Years 5 Years
Axis Bluechip Fund 18.20% 19.60% 10.30%
Canara Robeco Bluechip Equity Fund 15.20% 14.60% 9.10%
Edelweiss Large Cap Fund 13.40% 14.50% 9.10%
UTI Equity Fund 13.50% 14.30% 9.00%
Mirae Asset India Equity Fund  11.30% 14.20% 11.20%
Kotak Standard Multicap Fund 13.10% 13.70% 10.80%
DSP Equity Fund 17.00% 13.80% 9.20%
JM Multicap Fund 16.10% 13.80% 10.20%
IDFC Focused Equity Fund 8.20% 13.00% 7.10%
ICICI Prudential Blue Chip Fund 8.30% 12.10% 8.80%

 

Equity Fund – Mid Cap
1 Year 3 Years 5 Years
Axis Mid Cap 13.20% 16.90% 9.40%
Kotak Emerging Equity Scheme 10.80% 10.40% 10.30%
Taurus Discovery (Midcap) Fund 3.90% 10.30% 8.90%
DSP Mid Cap 10.90% 10.30% 10.20%
Invesco India Mid Cap Fund 4.00% 10.20% 7.60%
Edelweiss Mid Cap Fund 5.70% 9.70% 8.60%
BNP Paribas Mid Cap Fund 8.60% 8.60% 8.00%
L&T Mid Cap Fund 0.50% 8.40% 9.40%
Tata Mid Cap Fund 1.00% 7.80% 6.80%
ICICI Prudential MidCap Fund -0.60% 7.20% 6.20%

 

Equity Fund – Small Cap
1 Year 3 Years 5 Years
SBI Small Cap Fund 9.30% 14.40% 13.60%
HDFC Small Cap Fund -8.60% 9.50% 8.80%
Nippon India Small Cap Fund 1.40% 9.40% 10.10%
L&T Emerging Businesses Fund -5.90% 7.80% 10.10%
Kotak Small Cap Fund 10.10% 7.70% 8.50%
ICICI Prudential Small Cap Fund 14.30% 7.00% 6.20%
Franklin India Smaller Companies Fund -2.60% 3.90% 4.80%
DSP Small Cap Fund 4.20% 2.30% 8.10%
Aditya Birla Sunlife Small Cap Fund -6.70% 2.20% 6.20%
Sundram Small Cap Fund -2.30% 0.40% 2.60%

 

Equity Fund – Dividend Yield
1 Year 3 Years 5 Years
Principal Dividend Yield Fund 6.88% 12.71% 8.65%
UTI Dividend Yield Fund 5.08% 9.70% 6.19%
Templeton India Equity Income Fund 6.12% 8.27% 7.01%
ICICI Pru Dividend Yield Fund -0.31% 6.07% 4.93%
Aditya Birla Sunlife Dividend Yield Fund 4.97% 4.67% 2.76%

 

Hybrid  Fund
1 Year 3 Years 5 Years
HDFC Balance Advantage Fund 1.8% 16.1% 15.2%
SBI Equity Hybrid Fund 15.8% 12.7% 9.3%
HDFC Hybrid Equity Fund -6.2% 12.2% 12.8%
Mirae Asset Hybrid Equity Fund 10.8% 11.7%
Edelweiss Multi Asset Allocation Fund 11.8% 11.2% 6.9%
Sundaram Equity Hybrid Fund 11.0% 10.4% 7.4%
Axis Triple Advantage Fund 17.9% 10.3% 7.1%
SBI Dynamic Asset Allocation Fund 5.8% 10.0%
Nippon India Balance Advantage Fund 7.6% 9.8% 6.9%
ICICI Pru Balance Advantage Fund 10.5% 9.5% 8.0%

DEBT FUNDS

Debt Funds
1 Year 3 Years 5 Years
SBI Magnum Medium Duration Fund 11.69% 8.87% 9.94%
Franklin India Dynamic Accrual Fund 7.42% 8.67% 9.76%
Nippon India Gilt Securities Fund 13.39% 8.49% 10.43%
ICICI Prudential Credit Risk Fund 10.16% 8.44% 9.21%
Edelweiss Banking and PSU Debt Fund 13.03% 8.39% 8.47%
Kotak Dynamic Bond Fund 11.92% 8.38% 9.59%
LIC MF Banking & PSU Debt 10.36% 8.34% 8.11%
IDFC Banking & PSU Debt Fund 11.67% 8.31% 8.33%
Kotak Corporate Bond Fund 9.89% 8.20% 8.74%
L&T Money Market Fund 8.68% 8.15% 8.62%