Mutual fund scheme
Mutual fund investors have suffered heavy losses due to a major fall in the stock market. Almost all mutual funds have given negative returns over a period of 1, 3, 6 months. If we look at the average return of the 1-year returns of small-cap, mid-cap, large-cap and other major categories, most of them have to struggle to reach 5%. However, the mutual fund scheme with dividend yields has given outstanding returns to investors. After all, how are these mutual fund schemes with dividend yields different from the common scheme and why investors get great returns in the breakdown market too? Let’s know.
What is dividend mutual funds?
Dividend yield mutual scheme money is invested in companies that give regular dividend. These companies are roughly strongly strong, due to which their performance remains stable despite high volatility in the market. Therefore, there is no major decline in the shares of these companies in the broken market. Also, it keeps giving regular dividend from time to time. Due to this, they are also able to give better returns in the broken market.
Dividend Yield Top 5 Mutual Funds Scheme
1. ICICI Prudential Dividend Yield Equity Fund – Direct Plan
Average return in 5 years: 28.85%
2. Templeton India Equity Income Fund -Direct Plan
Average return in 5 years: 25.74%
3. Aditya Birla Sun Life Dividend Yield Fund – Direct Plan
Average return in 5 years: 22.75%
4. LIC MF Dividend Yield Fund – Direct Plan
Average return in 5 years: 21.81%
5. UTI Dividend Yield Fund – Direct Plan
Average return in 5 years: 21.69%
Benefits of Investment in Dividend Yield Mutual Fund Scheme
Regular income: If you want to earn some money every year from your investment, then this fund can be the right choice for you.
Low Risk: These funds usually invest in companies that are already established and provide stable returns, which keeps investment safe.
Long -term excellent returns: Investing in these funds also gives you the benefit of growth of equity market, which increases your capital over time.
Better performance in recession: When the market falls, these companies can still perform well as investors seek safe options.
risk
Since these funds invest in equity, they can also be affected by the decline in the market.
Dividend not guarantee: Companies pay dividends based on their profits, but do not require dividends at the same rate every year.
Possibility of low growth: These companies may increase relatively slower than high -growing shares, which can limit your returns.
Who should invest?
If you want a stable income source after retirement, these funds can be a good option. If you want to invest in the stock market, but without taking a lot of risk, these funds can be right for you. If you want to invest for 5 to 10 years, then these funds are suitable for you.
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