Investing in mutual funds is the latest trend with investors today. There are numerous advantages of investing in the best dividend mutual funds. You can start your investment with a minimum value as low as rupees 500. You can earn a good profit if you can spend for a more extended period in mutual funds. There are also many funds which can give you the benefit of tax savings.
What is dividend paying mutual funds?
The mutual funds invested in organizational bodies that yield the right amount of dividend are called dividend paying mutual funds. The dividend is the profits that are earned by these organizations and are shared with the shareholders. And these profits are referred to the returns that the mutual funds get by selling the shares at a price higher than the cost price.
Any company can pay the dividends daily, monthly, quarterly, or annually to the shareholders.
Top 10 best dividend mutual funds in India are:
- Franklin India Opportunities Fund – they aim at generating economic growth by capitalizing on the long term growth opportunities in the economy of India. They have given a return of 18.5% in 5 years.
- Aditya Birla Sun Life Frontline Equity Fund – they aim at allocating 100% equity by diversifying the investment across multiple industries. They returned 17.5% in 5 years.
- Aditya Birla Sun Life Dividend Yield Plus – their main objective is to invest in different dividend paying companies that yield a higher amount of profit. They gave a return of 14.8% in 5 years.
- ICICI Prudential Dividend Yield Equity Fund – they invest in equity and equity related instruments that provide a long term profit. They have given a return of 11.8% in 3 years.
- Principal Dividend Yield Fund (Growth) – they invest in a well-diversified portfolio of companies that yield a high performance. They gave a good return of 18.1% in 5 years.
- Principal Dividend Yield Fund (Growth) – they invest in a well-diversified portfolio of companies that yield a high performance. They gave a good return of 18.1% in 5 years.
- L & T Emerging Businesses Fund – they invest in small-cap stocks to generate long term profit. They have yielded a return of 23.2% in 3 years.
- UTI Dividend Yield Fund – they have given a gain of 14% in 5 years.
- Kotak Select Focus Fund (Kotak Standard Multicap Fund) – they have returned 22.6% in 5 years.
- Axis Midcap Fund – they yielded 24.9% in 5 years.
- Invesco India Growth Fund – This fund have given a good return of 21.3% in 5 years.
Also, you must do a thorough research of the market before investing in best dividend mutual funds. Source
Hi, I’m a Financial Operations Specialist, having an experience of over 12+ years. I have worked with a major financial institution like Goldman Sachs, in their investment management division. During my term with Goldman, I’ve worked on derivatives, hedge funds, futures, etc. I also have experience in manufacturing industries in Credit Risk Analysis and Approval to the clients for prospective businesses with the parent company. I’ve got a financial degree from Vinoba Bhave University.
