Top 5 Dividend Yield Mutual Funds For Steady Returns
Last Updated:September 11, 2025, 09:32 IST
ICICI Prudential Dividend Yield Equity Fund leads dividend mutual funds, followed by Aditya Birla Sun Life, LIC MF, Templeton India Equity Income Fund, and UTI Dividend Yield Fund.
Predominantly invest in dividend-yielding stocks, with at least 65% in stocks in the folio
Dividend Mutual Fund List: A dividend mutual fund is one of the MF categories where the focus is mainly on investing in regular, dividend-paying stocks. These companies are usually well-established, financially stable, and generate consistent profits.
While investing in a dividend mutual fund, investors hope to get steady returns through dividends, along with long-term capital growth.
Predominantly invest in dividend-yielding stocks, with at least 65% in stocks in the folio as per Sebi guideline.
Top 5 Mutual Fund In Dividend-Yield Category (Based on AMFI Data as of September 11):
|
Rank |
Fund Name |
3-Year CAGR (%) |
AUM (₹ Cr) |
Expense Ratio (%) |
|---|---|---|---|---|
|
1 |
ICICI Prudential Dividend Yield Equity Fund |
22.82 |
4,765.86 |
0.57 |
|
2 |
Aditya Birla Sun Life Dividend Yield Fund |
20.88 |
1,511.41 |
1.42 |
|
3 |
LIC MF Dividend Yield Fund |
19.03 |
493.57 |
0.69 |
|
4 |
Templeton India Equity Income Fund |
18.49 |
2,367.36 |
1.23 |
|
5 |
UTI Dividend Yield Fund |
17.85 |
4,082.10 |
1.37 |
The ICICI Prudential Dividend Yield Equity Fund is ranked first among dividend yield funds. It has delivered a 3-year CAGR of 22.82%, manages assets worth about Rs 4,765.86 crore, and charges an expense ratio of 0.57%.
In the second spot is the Aditya Birla Sun Life Dividend Yield Fund, which has given a 3-year CAGR of 20.88%. Its assets under management (AUM) stand at Rs 1,511.41 crore, and it comes with an expense ratio of 1.42%.
The LIC MF Dividend Yield Fund holds the third rank. Over the last three years, it has delivered a CAGR of 19.03%, with an AUM of Rs 493.57 crore and an expense ratio of 0.69%.
At number four is the Templeton India Equity Income Fund, which has generated a 3-year CAGR of 18.49%. The fund manages about Rs 2,367.36 crore in assets and has an expense ratio of 1.23%.
Note that past performance is not indicative of future results, and investors should consider factors like risk, expense ratio, and AUM before investing. For the latest figures, check AMFI or fund house websites.
AMFI data of August highlighted an outflow of Rs 174.69 crore from dividend yield mutual funds, with total aum standing at Rs 31,985 crore. On the other hand, there was a net inflow of Rs 96.65 crore in July month.
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
September 11, 2025, 09:31 IST
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