Evaluating a mutual fund’s return is crucial to assessing overall performance. Although there are other considerations, too, such as a mutual fund house’s credibility, past performance of fund manager, and category of mutual fund, among others; the past performance — invariably — is seen as one of the key factors to judge a mutual fund.
Here we zero in on some of the top performing dividend yield funds. These are, in fact, the mutual funds which invest in those stocks which generate higher dividend yield.
|Mutual fund||3-year-returns (%)|
|Templeton India Equity Income Fund||22.82|
|ICICI Prudential Dividend Yield Equity Fund||22.80|
|Aditya Birla Sun Life Dividend Yield Fund||18.77|
(Source: AMFI; regular returns as on Oct 25).
As we can see in the table above, Templeton India Equity Income Fund gave a return of 22.82 percent, ICICI Prudential Dividend Yield Equity Fund delivered a CAGR return of 22.80 percent, ABSL dividend yield fund gave a return of 18.77 percent.
However, the past five-year returns of these schemes were relatively lower. As we can see in the table below, ABSL dividend yield fund gave a CAGR of 7.84 percent, ICICI Prudential dividend yield fund delivered a return of 9.79 percent and Templeton India Equity Income Fund gave a return of 12.66 percent.
|Mutual Fund||5-year-returns (%)|
|Templeton India Equity Income Fund||12.66|
|ICICI Prudential Dividend Yield Equity Fund||9.79|
|Aditya Birla Sun Life Dividend Yield Fund||7.84|
(Source: AMFI, regular returns as on Oct 25)
Templeton India Equity Income Fund: This fund was launched in May 2006. The fund managers of the scheme are Anand Radhakrishnan, Rajasa Kakulavarapu and Sandeep Manam.
The top 10 companies and sectors where the fund has invested include Power Grid Corp, Infosys, NTPC, ITC, Hindustan Unilever, Embassy Office Parks, GAIL India, Brookfield India Real Estate Trust and NHPC.
It has delivered a return of 13.63 percent since inception. In other words, if someone had invested ₹1,00,000 at the time of inception, it would have grown to ₹8,14,723. And as mentioned above, its past 3-year and 5-year returns were 22.82 and 12.66 percent, respectively.
(Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.)