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% |
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