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Given Over 50% Absolute SIP Returns In 3 Years, This Dividend Yield Fund Is Good For Investments
In comparison to a new dividend yield fund, a dividend yield fund that has witnessed high and adverse market periods will be in a better position to give reliable returns. Investors should have a three-year investment horizon and be wary of new schemes and those with a tiny corpus.
High dividend yield firms, according to analysts, trade at excellent prices, and if markets begin to rebound broadly, stocks with appealing valuations and strong fundamentals may offer stronger capital appreciation prospects.
Here, we have given insights into a dividend yield fund that recently turned 16 years. The fund offered very high absolute returns on 2-year lumpsum investments, as well as the highest SIP returns on 3 years in the category.
Templeton India Equity Income Fund - Direct-Growth
This is an Equity Thematic Dividend Yield Fund from the house of Franklin Templeton Mutual Fund. It is a 16-year-old fund launched on 18 May 2006.
The size of Asset Under Management (AUM) is Rs 1245.95 Crore. Whereas, the Net Asset Value (NAV) as on 26th May 2022 is Rs 86.1076. The expense ratio of this fund is high compared to its category average The expense ratio is 1.64%, whereas, the category average is 1.25%.
It is an open-ended medium-sized fund of its category. The fund is rated moderately high risky for investments. It has not yet been rated by any rating agency. This fund invests in Indian and emerging market firms that have the potential to deliver both growth and regular income in the form of dividends. For the past 12 years, the fund has continuously distributed a dividend.
The investment in this fund starts with the minimum required amount of Rs 5,000 and Rs 500 for SIP investment. This fund requires Rs 1000 for additional investment. There is no lack-in period, however, it charges 1% for redemption within 365 days of the investment. Nifty Div Opps 50 TRI is the fund's benchmark.
Absolute & Annualised Returns
Lump-Sum Investment Returns
Since its launch, it has delivered 14.88% average annual returns.
| Tenure | Absolute Returns | Annualised Returns |
|---|---|---|
| 1 Year | 19.99% | 19.99% |
| 2 Year | 124.01% | 49.67% |
| 3 Year | 79.10% | 21.38% |
| 5 Year | 101.18% | 15.00% |
| Since Inception | 268.38% | 14.88% |
SIP Returns
| Tenure | Absolute Returns | Annualised Returns |
|---|---|---|
| 1 Year | 4.11% | 7.73% |
| 2 Year | 34.19% | 31.21% |
| 3 Year | 52.90% | 29.64% |
| 5 Year | 64.81% | 20.09% |
Portfolio
The fund is invested in equities to the tune of 76.35 per cent, with 58.13 per cent in large-cap stocks, 13.82 per cent in mid-level stocks, and 0.85 per cent in small-cap companies.
The Energy, Consumer Staples, Technology, Construction, and Automobile sectors account for the majority of the fund's holdings. In comparison to other funds in the category, it has less exposure to the Energy and Consumer Staples sectors.
Power Grid Corp. Of India Ltd., Infosys Ltd., National Thermal Power Corp. Ltd., Embassy Office Parks REIT, and Brookfield India Real Estate Trust REIT are among the fund's top holdings.
Disclaimer
Mutual fund investments are subject to market risk. Read all scheme related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.
