This Dividend Yield Fund Is Good For SIP, Given 18.67% Annual Average Returns

Volatility is here to remain, given the rising macro threats to earnings at the current valuation. With low-interest rates and stronger prospects for domestic cyclical, individual investors could use equities mutual fund dividend yield schemes for higher tax-efficient returns.

Dividend Yield Funds primarily invest in dividend-paying equities, with a bias toward businesses that have a long history of paying dividends at the time of investing. The majority of these funds are market cap and industry neutral.

IDBI Dividend Yield Fund - Direct Plan-Growth

This Dividend Yield Fund is from IDBI Mutual fund launched on 21 December 2018. It is an open-ended small-cap fund of its category. The AUM of this fund is Rs 94.35 Crore. The NAV as of 19th April 2022 is Rs 17.67. The expense ratio of this fund is 1.55%. It is very close to its category average but high. 

It is a highly risky fund for investment. It is an unrated fund. The minimum amount required for investment in this fund is Rs 5000. For SIP, it is Rs 500. There is no lock-in period, but there is an exit load of 1% within 365 days on redemption of over 10% of the investment. 

Absolute And Annualised Returns

Lump-Sum Investment

Since its launch, it has delivered 19.79% average annual returns. 

Investment Returns	Absolute Returns	Annualised Returns
1 Year	23.83%	23.83%
2 Year	83.49%	35.35%
3 Year	72.05%	19.79%
Since Inception	76.70%	18.65%

SIP Returns

SIP Returns	Absolute Returns	Annualised Returns
1 Year	5.34%	10.09%
2 Year	27.41%	25.24%
3 Year	41.88%	24.09%

Portfolio

Fund has 98.53% investment in Indian stocks of which 63.04% is in large-cap stocks, 18.41% is in mid-cap stocks, and 17.08% is in small-cap stocks. The fund has the majority of its money invested in the Technology, Energy, Automobile, Financial, Metals & Mining sectors. It has taken less exposure in Technology, Energy sectors compared to other funds in the category. The fund's top holdings are Infosys Ltd., Tata Consultancy Services Ltd., Carborundum Universal Ltd., and Power Grid Corpn. Of India Ltd., Atul Ltd.

Disclaimers

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.