Top dividend yield mutual fund schemes are suitable for investors who want some cash flow at regular intervals on their investment amount. That’s why they choose dividend-yield mutual funds for their investments.
In this type of scheme, we have limited options to research their past performance. In a 10-year time frame, there are only 4 dividend yield mutual fund schemes, and in a 5-year time frame, there are only 6. However, there are more than 10 schemes in the short term, like 6 months. This shows that it is either a new concept or not a very common or popular concept in the mutual fund industry.
When we choose any mutual fund scheme for investment, we have two options: one is the Growth option, and the other is the IDCW plan. The full form of IDCW is Income Distribution Cum Capital Withdrawal, which is the dividend plan.
Dividend yield mutual fund schemes have some drawbacks because they pay dividends, which are added to our total income. We have to pay taxes on this income according to our tax slabs in both the old and new tax regimes. Before the Modi government, dividends were not taxable.
Many of us know that stocks pay dividends, but not everyone knows that mutual funds also pay dividends under the IDCW plan. In this article, we are going to provide you with a list of great dividend-yield mutual fund schemes that have performed well in the past across different time frames.
Top Dividend Yield mutual fund schemes by returns in the last 6 months
| Sr No | Top Dividend Yield Mutual Fund Schemes | Returns (%) |
| 1 | LIC MF Dividend Yield Fund Direct Plan-Growth | 28.71% |
| 2 | ICICI Prudential Dividend Yield Equity Fund Direct Plan-Growth | 28.66% |
| 3 | Templeton India Equity Income Fund Direct-Growth | 27.16% |
| 4 | Sundaram Dividend Yield Fund Direct Plan-Growth | 25.09% |
| 5 | HDFC Dividend Yield Fund Direct Plan-Growth | 23.83% |
| 6 | UTI Dividend Yield Fund Direct Plan-Growth | 22.04% |
| 7 | Tata Dividend Yield Fund Direct Plan-Growth | 21.43% |
| 8 | SBI Dividend Yield Fund Direct Plan-Growth | 19.70% |
| 9 | SBI Dividend Yield Fund Direct Plan-Growth | 18.38% |
| 10 | SBI Dividend Yield Fund Direct Plan-Growth | 18.38% |
Top Dividend Yield mutual fund schemes by returns in the last 1 year
| Sr No | Top Dividend Yield Mutual Fund Schemes | Returns (%) |
| 1 | ICICI Prudential Dividend Yield Equity Fund Direct Plan Growth | 56.16% |
| 2 | LIC MF Dividend Yield Fund Direct Plan Growth | 52.91% |
| 3 | Aditya Birla Sun Life Dividend Yield Fund Direct Plan Growth | 51.33% |
| 4 | HDFC Dividend Yield Fund Direct Plan Growth | 48.06% |
| 5 | Tata Dividend Yield Fund Direct Plan Growth | 45.91% |
| 6 | UTI Dividend Yield Fund Direct Plan Growth | 45.32% |
| 7 | Sundaram Dividend Yield Fund Direct Plan Growth | 45.22% |
| 8 | Templeton India Equity Income Fund – Direct Growth | 43.29% |
| 9 | SBI Dividend Yield Fund Direct Plan Growth | 35.91% |
| 10 | SBI Dividend Yield Fund Direct Plan Growth | 35.91% |
Top Dividend Yield mutual fund schemes by returns in the last 2 years
| Sr No | Top Dividend Yield Mutual Fund Schemes | Returns (%) |
| 1 | ICICI Prudential Dividend Yield Equity Fund Direct Plan Growth | 30.59% |
| 2 | Aditya Birla Sun Life Dividend Yield Fund Direct Plan Growth | 27.58% |
| 3 | HDFC Dividend Yield Fund Direct Plan Growth | 26.66% |
| 4 | LIC MF Dividend Yield Fund Direct Plan Growth | 23.66% |
| 5 | Templeton India Equity Income Fund Direct Growth | 23.04% |
| 6 | Sundaram Dividend Yield Fund Direct Plan Growth | 22.40% |
| 7 | Tata Dividend Yield Fund Direct Plan Growth | 22.27% |
| 8 | UTI Dividend Yield Fund Direct Plan Growth | 19.59% |
Top Dividend Yield mutual fund schemes by returns in the last 3 years
| Sr No | Top Dividend Yield Mutual Fund Schemes | Returns (%) |
| 1 | ICICI Prudential Dividend Yield Equity Fund Direct Plan Growth | 34.20% |
| 2 | HDFC Dividend Yield Fund Direct Plan Growth | 29.98% |
| 3 | Aditya Birla Sun Life Dividend Yield Fund Direct Plan Growth | 27.73% |
| 4 | Templeton India Equity Income Fund Direct Growth | 26.75% |
| 5 | LIC MF Dividend Yield Fund Direct Plan Growth | 24.09% |
| 6 | Sundaram Dividend Yield Fund Direct Plan Growth | 22.32% |
| 7 | UTI Dividend Yield Fund Direct Plan Growth | 21.73% |
Top Dividend Yield mutual fund schemes by returns in the last 5 years
| Sr No | Top Dividend Yield Mutual Fund Schemes | Returns (%) |
| 1 | ICICI Prudential Dividend Yield Equity Fund Direct Plan Growth | 23.35% |
| 2 | Templeton India Equity Income Fund Direct Growth | 22.75% |
| 3 | LIC MF Dividend Yield Fund Direct Plan Growth | 21.65% |
| 4 | Aditya Birla Sun Life Dividend Yield Fund Direct Plan Growth | 21.49% |
| 5 | Sundaram Dividend Yield Fund Direct Plan Growth | 19.36% |
| 6 | UTI Dividend Yield Fund Direct Plan Growth | 18.42% |
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Top Dividend Yield mutual fund schemes by returns in the last 10 years
| Sr No | Top Dividend Yield Mutual Fund Schemes | Returns (%) |
| 1 | Templeton India Equity Income Fund Direct Growth | 18.27% |
| 2 | Sundaram Dividend Yield Fund Direct Plan-Growth | 17.04% |
| 3 | Aditya Birla Sun Life Dividend Yield Fund Direct Plan Growth | 15.77% |
| 4 | UTI Dividend Yield Fund Direct Plan Growth | 15.41% |
Conclusion
Investors should choose dividend yield mutual fund schemes according to their needs. Dividend yield mutual funds may not be suitable for everyone, especially those who want to create wealth in the long run. Long-term investors should choose the growth option so that they can compound their wealth better than with dividend-yield mutual fund plans.
Disclaimer
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Also Read: Top Large Cap Mutual Fund Schemes which gives huge returns in the past