Top 6 Dividend Yield SIP Mutual Funds: See How Rs.15,000 Monthly SIP Grew Over 5 Years
When you invest in mutual funds through a Systematic Investment Plan (SIP) or lump sum, the goal is usually to earn profits to meet various financial objectives. However, if you have a substantial amount and want regular income, dividend-yield mutual funds can be a good choice. These funds invest in companies that pay high dividends, generally large-cap firms that are financially sound. Consequently, such investments are less risky compared to those in mid or small-cap companies. Besides providing regular income through dividends, many dividend-yield funds have given solid returns over the last five years. Let’s consider six of the best-performing dividend-yield SIP mutual funds.
1. ICICI Prudential Dividend Yield Equity Fund – Direct Plan
Value Research has rated the fund as 5-star. The fund has given an outstanding return of 36.02% since inception. AUM stood at Rs.4,642 crores, while the NAV is at Rs.57.36. Against the benchmark index, NIFTY 500 TRI, the fund has delivered an annualized return of 18.53% since its inception in May 2014.
The portfolio holds 59 stocks, with significant exposure to ICICI Bank, NTPC, Sun Pharma, HDFC Bank, and Maruti Suzuki. A monthly SIP of Rs.15,000 here over the last five years is today worth Rs.21,65,352.
2. Templeton India Equity Income Fund – Direct Plan
The same corpus invested for over five years has delivered an annualised SIP return of 33.08%. It has an asset base of Rs.2,510 crores and its NAV is Rs.161.18. Since its launch in January 2013, it has given an annualized return of 18.03% benchmarked against the NIFTY 500 TRI.
The portfolio contains 43 stocks, with major holdings in NTPC, NHPC, Infosys, ONGC, and HCL Tech. A monthly SIP of Rs.15,000 in this fund has become Rs.20,21,970 in five years.
3. Aditya Birla Sun Life Dividend Yield Fund Direct Plan
The fund has given a 32.56% annualized SIP return over the last five years. It has an AUM of Rs.1,562 crores, and the NAV is at Rs.524.85. Since its inception in January 2013, the fund has given an annualized return of 15.71% against its benchmark NIFTY 500 TRI.
The fund has a 69-stock portfolio, which includes companies like Infosys, Coal India, NTPC, CMS Info Systems, ITC and TCS. In a period of five years, a Rs.15,000 monthly SIP in this fund has grown to Rs.19,97,651.
4. LIC MF Dividend Yield Fund – Direct Plan
This fund has yielded an SIP return of 31.66% annually, taken over five years duration. It is a smaller fund with assets under management of Rs.330 crores. The NAV is Rs.33.71. Returns-wise this fund has done well since its launch in December 2018, yielding a fairly robust 24.86% annually, benchmarked with the NIFTY 500 TRI.
The 72-stock portfolio of the fund comprises holdings in TCS, Kotak Bank, ICICI Bank, NTPC, RIL and Maruti Suzuki. A monthly SIP of Rs.15,000 in the fund has grown to Rs.19,55,524 over five years.
5. UTI Dividend Yield Fund – Direct Plan
This fund has returned 29.82% p.a. over five years through SIPs. The fund has an AUM of Rs.4,371 crores, and its NAV is Rs.197.39. The fund has given an annualized return of 16.00% since its inception in January 2013, with NIFTY 500 TRI as the benchmark.
The 51-stock portfolio features major holdings in HDFC Bank, Infosys, Tech Mahindra, ITC, TCS, and BEL. A Rs.15,000 monthly SIP in this fund has grown to Rs.18,72,636 in five years.
6. Sundaram Dividend Yield Fund – Direct Plan
The fund has given a SIP return of 27.61% compounded annually for five years. It manages assets worth Rs.977 crores, with an NAV of Rs.153.97. Since the fund was launched in January 2013, it has precisely given a return of 16.32% annually, benchmarked against NIFTY 500 TRI.
This fund has a 65-stock portfolio with NTPC, HDFC Bank, Infosys, ICICI Bank, TCS, RIL, and SBI. A Rs.15,000 monthly SIP in this fund has become Rs.17,76,937 in five years.
Conclusion
On the face of it, these seem to offer a regular income for an investor through dividends and have also held their own in growth over time, therefore being quite a good bet for the long term.
