Contents
- Dividend mutual funds
- Working of Dividend-Paying mutual funds
- 20 Best dividend-paying mutual fund schemes in India
- Best Dividend paying mutual funds (Company-wise list)
- Franklin India Mutual Funds
- Aditya Birla Sun Life Frontline Equity Fund
- Aditya Birla Sun Life Dividend Yield Plus
- ICICI Prudential Dividend Yield Equity Fund
- Principal Dividend Yield Fund- Growth
- L&T Emerging Business Fund-Direct Plan (D)
- UTI Dividend Yield Fund- Growth
- Kotak Standard Multicap Fund-Direct Plan (D)
- Axis Midcap Fund-Direct Plan
- Invesco India Growth Fund-Direct Plan (D)
- BNP Panirbas Dividend Yield Fund- Growth
- UTI Master share Unit Scheme (D)
- Canara Robeco F.O.R.C.E. Fund-Regular Plan
- Benefits of the Best dividend paying mutual funds
- Drawbacks of the Best dividend paying mutual funds
Dividend mutual funds
Although some people invest in mutual funds to gain regular income in the form of interest. But in some cases, people want intermittent cash flow to meet their inevitable expenses. This is where best paying dividend mutual funds come into play.
Dividend-paying mutual funds invest in equity & equity-oriented schemes in companies that pay dividends. Learn how to evaluate best equity mutual funds. The dividend is the profit that is earned by the company and this profit is shared in the form of dividends with the equity investors of the company. Profit equals the selling price of mutual funds, which is higher than the cost price of it. According to the scheme, the fund manager either purchases more stocks or distributes the dividend as the case may be.
When an investor invests in the dividend-paying scheme, then with time the investors get huge profits which in turn will result in excellent growth of the funds. The AMC (Asset Management Company handling the mutual fund’s investments) can then pay these dividends monthly, quarterly, weekly or annually (as the case may be).
Working of Dividend-Paying mutual funds
With the regular annual returns, the investor feels safe investing in such instruments. The taxes charged on interest received on debt funds are 28.84% and this includes cess and surcharge. The Finance Minister has recently announced a 10% tax on dividends as well. Along with this, there will be a 10% tax on long term capital gains on equity mutual funds. Keep reading on how tax is charged on mutual funds.
20 Best dividend-paying mutual fund schemes in India
The complete list of top 20 dividend-paying mutual fund schemes in India is given below
| Mutual fund scheme | Fund category | NAV (In Rs.) | The dividend (Rs. ) | Dividend yield (3 years ) |
|---|---|---|---|---|
| DSP Blackrock Equity opportunities Fund direct Dividend | Large & Midcap fund | Rs. 56.22 | 4.50 | 9.61% |
| Canara Robeco Emerging equities Direct Dividend | Large & Midcap fund | Rs. 67.90 | 3.00 | 4.82% |
| Principal Emerging Fund Direct Dividend | Large & Midcap fund | Rs. 90.4 | 5.92 | 18.34% |
| L&T Midcap Fund Direct Dividend | Mid-cap fund | Rs. 48.90 | 3.54 | 5.06% |
| Sundaram Large and Mid-cap Fund Direct dividend | Large & Midcap fund | Rs. 237.30 | 3.30 | 8.95% |
| SBIMF Smallcap Fund Direct Dividend | Small-Cap fund | Rs. 41.00 | 9.10 | 9.08% |
| Reliance Small Cap Fund Direct Dividend | Small-Cap fund | Rs. 34.40 | 3.00 | 4.36% |
| Kotak Standard Multi-cap Fund Direct Dividend | Multi-Cap fund | Rs. 25.00 | 2.00 | 4.91% |
| HDFCMF Small Cap Fund Direct Dividend | Small-Cap fund | Rs. 31.40 | 2.75 | 8.25% |
| Aditya Birla Sun Life Small Cap Fund Direct Dividend | Small-cap fund | Rs. 23.60 | 1.31 | 6.30% |
| UTI Equity Fund-Direct Dividend | Multi-cap fund | Rs. 111.90 | 2.92 | 2.54% |
| Mirae Asset India Equity Fund-Direct Dividend | Multi-cap fund | Rs. 37.60 | 2.00 | 11.01% |
| SBI Magnum Multi-Cap Fund Direct Dividend | Multi-cap fund | Rs. 26.00 | 2.20 | 13.80% |
| Aditya Birla Sun Life Equity Fund-Direct Dividend | Multi-cap fund | Rs. 139.50 | 0.80 | 8.43% |
| Motilal Oswal Long Term Equity Fund-Direct Dividend | ELSS | Rs. 17.40 | 0.10 | 10.14% |
| Invesco India Tax Plan Direct Dividend | ELSS | Rs. 23.70 | 2.20 | 9.41% |
| HDFC Equity Savings Fund Direct Dividend | Equity savings fund | Rs. 12.20 | 0.22 | 5.75% |
| Indiabulls Arbitrage Fund Direct Dividend | Arbitrage fund | Rs. 10.50 | 0.05 | 5.75% |
| Reliance Arbitrage Fund Direct Dividend | Arbitrage fund | Rs. 10.90 | 0.04 | 5.58% |
| SBI Equity Savings Fund Direct Monthly Dividend | Equity savings fund | Rs. 12.40 | 0.04 | 4.96% |
Best Dividend paying mutual funds (Company-wise list)
Franklin India Mutual Funds
Objective
The main aim of the Franklin India Mutual funds scheme is to attain capital appreciation by investing in long term growth opportunities in the economy.
Investment
The investment is in a broad range of stocks without any limitation, either qualitative or quantitive across market capitalization
| Period | Returns (as on July 9th, 2018) |
|---|---|
| 1 month | -1 |
| 3 month | -0.8 |
| 6 month | -7 |
| 1 year | 7.3 |
| 2 years | 11.8 |
| 3 years | 8.4 |
| 5 years | 18.5 |
Aditya Birla Sun Life Frontline Equity Fund
The objective of the scheme
The main aim of this scheme is to attain long term capital growth. Aditya Birla mutual fund schemes.
Investment
The target allocation of the funds is in 100% equity & equity related instruments at being diversified across various industries.
| Period | Returns (as on July 9th, 2018) |
|---|---|
| 1 month | -0.6 |
| 3 month | -0.6 |
| 6 month | -4.1 |
| 1 year | -4.1 |
| 2 years | 12.6 |
| 3 years | 9.7 |
| 5 years | 17.1 |
Aditya Birla Sun Life Dividend Yield Plus
Objective
Aditya Birla Sun Life funds aim at generating capital growth & income
Investment
The pool of money is invested in a well-diversified portfolio of dividend paying companies that have a relatively high dividend yield.
| Period | Returns (as on July 9th, 2018) |
|---|---|
| 1 month | -3 |
| 3 months | -4.6 |
| 6 months | -12.4 |
| 1 year | -1.5 |
| 2 years | 9.8 |
| 3 years | 6.2 |
| 5 years | 14.8 |
ICICI Prudential Dividend Yield Equity Fund
Objective
The main aim of this fund is to attain medium to long term capital gains & dividend distribution.
Investment
This objective is achieved by investing in a well-diversified portfolio of equity & equity related instruments which offer an attractive dividend yield
| Period | Returns (as on July 9th, 2018) |
|---|---|
| 1 month | -2.4 |
| 3 months | -4.1 |
| 6 months | -10.8 |
| 1 year | -0.3 |
| 2 years | 14.5 |
| 3 years | 11.8 |
| 5 years | – |
Principal Dividend Yield Fund- Growth
Objective
Like any other investment on this list, the main aim is to attain capital appreciation.
Investment
The investment is done predominantly in a well-diversified portfolio of companies that have a relatively high dividend yield.
| Duration | Returns (as on July 9th, 2018) |
|---|---|
| 1 month | -0.5 |
| 3 months | 0.8 |
| 6 months | -5.5 |
| 1 year | 13.7 |
| 2 years | 20.6 |
| 3 years | 13.7 |
| 5 years | 18.1 |
L&T Emerging Business Fund-Direct Plan (D)
Objective
Fund’s main aim is to attain long term capital appreciation. Must review the L&T infrastructure fund.
Investment
Diversified equity fund which will invest predominantly in small-cap stocks.
| Duration | Return (as on July 9th, 2018) |
|---|---|
| 1 month | -2.5 |
| 3 month | -6.4 |
| 6 month | -12 |
| 1 year | 8.5 |
| 2 years | 26.9 |
| 3 years | 23.2 |
| 5 years | – |
UTI Dividend Yield Fund- Growth
Objective
Like any other investment on this list, the main aim is to attain capital appreciation. You must be wondering what are UTI mutual funds.
Investment
It attains this objective by investing in dividend yielding equity & equity related securities
| Duration | Returns (as on July 9th., 2018) |
|---|---|
| 1 month | -2.4 |
| 3 month | -0.1 |
| 6 month | -3 |
| 1 year | 8 |
| 2 years | 13.4 |
| 3 years | 9.5 |
| 5 years | 14 |
Kotak Standard Multicap Fund-Direct Plan (D)
Objective
Long-term capital appreciation is the main aim of this fund. Inform yourself on the Kotak mutual funds.
Investment
The investment is in equity & equity related securities, which are generally selected on a few selected sectors.
| Duration | Returns (as on July 9th, 2018) |
|---|---|
| 1 month | 0.7 |
| 3 months | 1.6 |
| 6 months | -1.4 |
| 1 year | 9.4 |
| 2 years | 17.6 |
| 3 years | 14.4 |
| 5 years | 22.6 |
Axis Midcap Fund-Direct Plan
Objective
Long-term capital appreciation
Investment
This is achieved by investing in equity as well as equity-related instruments of Mid-cap companies. Must know about mid-cap funds
| Duration | Returns (as on July 9th, 2018) |
|---|---|
| 1 month | 0.1 |
| 3 months | 1.2 |
| 6 months | 1.6 |
| 1 year | 18.3 |
| 2 years | 18.7 |
| 3 years | 11.4 |
| 5 years | 24.9 |
Invesco India Growth Fund-Direct Plan (D)
Objective
Long-term capital appreciation
Investment
This is achieved by investing in equity as well as equity-related instruments of Large as well as Mid-cap companies.
| Duration | Returns (as on July 9th, 2018) |
|---|---|
| 1 month | -0.6 |
| 3 months | 0.1 |
| 6 months | 0.1 |
| 1 year | 16.6 |
| 2 years | 20.1 |
| 3 years | 13.8 |
| 5 years | 21.3 |
BNP Panirbas Dividend Yield Fund- Growth
Objective
The target of the investment is to generate long term capital actively managed portfolio
Investments
The investments are in equity and equity-related securities
| Duration | Returns (as on July 9th, 2018) |
|---|---|
| 1 month | 4.5 |
| 3 months | 2.2 |
| 6 months | 0.2 |
| 1 year | 4 |
| 2 years | 11.4 |
| 3 years | 9.5 |
| 5 years | 20.2 |
Objective
The target of the investment is to generate long term capital actively managed portfolio
Investment
The investments are made in equity and equity-related securities of large-cap companies.
| Duration | Returns (as on July 9th, 2018) |
|---|---|
| 1 month | 5.5 |
| 3 months | 7.8 |
| 6 months | 10.1 |
| 1 year | 5.2 |
| 2 years | 15.2 |
| 3 years | 10.4 |
| 5 years | 30.4 |
Canara Robeco F.O.R.C.E. Fund-Regular Plan
Objective
The main objective of the fund is to generate long-term capital
Investment
The money is invested in equity & equity-related securities of companies that directly or indirectly benefit from the growing consumer demand in India.
| Duration | Returns (as on July 9th, 2018) |
|---|---|
| 1 month | – |
| 3 months | 0.9 |
| 6 months | -4.5 |
| 1 year | -1.3 |
| 2 years | 22.6 |
| 3 years | 19.2 |
| 5 years | 49 |
Benefits of the Best dividend paying mutual funds
- A stream of regular dividends indicates a form of steady cash flows.
- There are no taxes when the interest is in the hands of the investors.
- When an investment is made in dividend paying mutual funds, this reduces the market risk and thus acts as a hedge against market turmoil.
Drawbacks of the Best dividend paying mutual funds
- Any dividend paid is after the DDT (Dividend Distribution Tax) is charged. This means that although the dividend is tax-free in the hand of the investors, the divided he/she receives is after a deduction. But what are the Types & objectives in a mutual fund?
- Dividends will be there if there is a profit. A loss incurring company doesn’t guarantee regular income in the form of dividends.
- In the case the market is booming, the dividends underperform the growth fund.
- If a company pays high dividends, then this might mean the company doesn’t have enough growth opportunities.
A friend in need is a friend indeed. And we at WealthBucket is the friend you need to invest in equity mutual funds, large-cap funds, multi-cap funds, or debt funds. You can either contact us at +91 9999379929 or email us at contact@wealthbucket.in
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