These funds invest in diversified groups of stocks that help distribute the risk of investing in single stocks or those with similar themes. As per the guidelines prescribed by Securities and Exchange Board of India (Sebi), dividend yield MFs are required to allocate at least 65% of their portfolio from dividend-yielding stocks.
According to Ace Equities data, there are 9 active dividend yield mutual funds and each fund has completed more than a year. There are two schemes which have not completed 3 years. The combined net assets under management (AUM) stood at Rs 23,618.09 at the end of February 28, 2024, with net flows of Rs 94 crore during the reported period.
The average returns given by this category over a 1-year period stand at 45.12% while 3-year returns amount to 24.46%.
The highest 1-year return has been given by ICICI Pru Dividend Yield Equity Fund(G) (54%) while the lowest by SBI Dividend Yield Fund-Reg(G) (33.36%). ICICI Pru Dividend Yield plan has also given the highest 3-year returns in this pack.
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