Thematic funds are mutual funds that invest in stocks that are related to a specific theme. These funds are more diversified than sectoral funds because they invest in firms and sectors that are linked by a common theme. With low prevailing interest rates, retail investors should consider dividend yield equities mutual fund schemes for higher tax-efficient returns. These funds primarily invest in dividend-paying equities, with a preference for companies that have a history of paying dividends on time.
UTI Dividend Yield Fund
UTI Dividend Yield Fund Direct-Growth manages a total of 3,177 crores in assets (AUM). The fund's expense ratio is 1.49 percent. The 1-year returns on UTI Dividend Yield Fund Direct-Growth are 73.55 percent. It has had an average yearly return of 14.68 percent since its inception.
Infosys Ltd., Tech Mahindra Ltd., Mphasis Ltd., Hindustan Unilever Ltd., and ITC Ltd. are the fund's top five holdings. The program invests primarily in dividend-paying equities and equity-related instruments in order to achieve long-term capital appreciation and income. UTI Dividend Yield Fund's NAV on September 24, 2021, is 115.9.
Templeton India Equity Income Fund
Templeton India Equity Income Fund-Growth has assets under management (AUM) of 1,169 crores. The fund has a 2.31 percent cost ratio.
Templeton India Equity Income Fund has a 1-year growth rate of 76.40 percent. It has had an average yearly return of 14.26% since its inception.
The Scheme uses a value strategy to invest primarily in equities with a current or potentially attractive dividend yield in order to deliver a combination of regular income and long-term capital appreciation. Templeton India Equity Income Fund's NAV as of September 24, 2021 is 77.58.
Principal Dividend Yield Fund
Principal Dividend Yield Fund Direct-Growth has a total asset under management (AUM) of 238 crores. The fund has a 2.15 percent cost ratio, which is more than most other Thematic-Dividend Yield funds.
The 1-year returns for the Principal Dividend Yield Fund Direct-Growth are 67.25 percent. It has generated an average yearly return of 15.09 percent since its inception. The majority of the money in the fund is invested in the Technology, Financial, Energy, FMCG, and Chemicals industries. The scheme invests primarily in a well-diversified portfolio of firms with a high dividend yield in order to generate capital appreciation.
ICICI Prudential Dividend Yield Equity Fund
ICICI Prudential Dividend Yield Equity Fund-Growth had assets under management (AUM) of 446 crores, making it a medium-sized fund in its category. The fund has a 2.83 percent cost ratio.
The growth returns of the ICICI Prudential Dividend Yield Equity Fund during the last year have been 80.17 percent. It has returned an average of 13.73 percent per year since its inception. The Energy, Technology, Financial, Services, and Healthcare sectors account for the majority of the fund's holdings. For September 24, 2021, the NAV of the ICICI Prudential Dividend Yield Equity Fund is 25.8.
Aditya Birla Sun Life Dividend Yield Fund
Aditya Birla Sun Life Dividend Yield Fund-Growth has assets under management (AUM) of Rs. 865 crores, making it a medium-sized fund in its category. The fund has a 2.44 percent cost ratio.
Aditya Birla Sun Life Dividend Yield Fund had a 1-year growth rate of 62.81 percent. It has returned an average of 19.00 percent per year since its inception. For September 24, 2021, the NAV of Aditya Birla Sun Life Dividend Yield Fund is 253.81. The strategy tries to earn profits by investing in firms that give out significant dividends. It would strive to create a portfolio with a high dividend yield, significant capital protection, and a stable dividend yield.
Dividend yield equities MF
Dividend yield equities are less liquid in terms of trading volumes in the stock markets, therefore the effect cost and portfolio liquidity risk are higher for retail investors. There may be times when dividend yield stocks lag other equities in the market, which could have an impact on the fund's performance. A dividend yield fund with a higher allocation to large-cap equities is a good choice for investors who don't want to take on too much risk. Investors should have a three-year investing horizon and avoid new or small-capitalized schemes. These funds are appropriate for investors seeking a diversified portfolio of dividend-paying companies with the potential for long-term capital appreciation as well as equity investments with a fair amount of stability and lower risk over the medium to long term.
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