Dividend yield MFs deliver up to 133% return in just 3 years. Should you invest?
The top three schemes offered an absolute return of more than 100% in the last three years. ICICI Prudential Dividend Yield Equity Fund, the topper in the category, gave an absolute return of 133% in the last three years. HDFC Dividend Yield Fund gave an absolute return of 111% in the said period.
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View Details» <div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-109584992»>Aditya Birla Sun Life Dividend Yield Fund gave an absolute return of 104% in the last three years. Templeton India Equity Income Fund and LIC MF Dividend Yield Fund gave an absolute return of 99% and 87%, respectively.
The dividend yield funds have offered superior returns in the last three years. The category also featured on the list of equity categories that gave more than 25% CAGR return in the last three years. The other equity categories in the list that gave more than 25% CAGR were PSU funds, infrastructure funds, small cap, and mid cap categories.
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What made dividend yield funds deliver this performance in the last three years? “Whenever interest rates are high and the market appears volatile or uncertain, investors tend to seek out investments that are considered to be less risky. Dividend-paying stocks tend to be from larger, more established companies with a history of steady performance. These companies are generally seen as more reliable,” said Adhil Shetty, CEO, Bankbazaar.com.
“The good performance of
