Uncategorized

Best dividend paying mutual funds


Many mutual fund experts do not favour dividends. They ask investors to redeem the required amount, rather than banking on mutual funds to declare dividends. They argue that since mutual funds declare out of profits, they won’t be able declare dividends when the market is going through a bad phase. Still, many investors always look for the best dividend paying mutual funds. That is why ETMutualFunds decided to look for mutual funds that paid dividends consistently in the last five years.

ETMutualFunds considered all equity and equity-oriented schemes with the dividend payout option for this study. We considered five years, starting from February 15, 2018 to February 15, 2023. We got a total of 156 dividend payout schemes with different frequencies. We filtered out the schemes that offered leads than 40 dividends during the five-year period. That left us with schemes that have paid more than 40 dividends in five years. Around 24 mutual fund schemes have offered regular dividends in a five-year horizon, with the majority of schemes having monthly payout option, the study showed.

As said earlier, mutual fund schemes pay dividends out of the profits they make. So, each time a scheme declares a dividend, its NAV goes down proportionately. This option is only recommended to retirees or to investors looking for regular income from their investments. Even they should opt for Systematic Withdrawal Plan if they want money regularly without fail.


Here are the equity mutual fund schemes that paid more than 40 dividends in the last five years :

Scheme Name
No of Dividends during Period
Returns from Dividends during Period
HDFC Balanced Advantage Fund(IDCW) 57 64.55
Edelweiss Balanced Advantage Fund-(M-IDCW) 59 54.13
DSP Equity & Bond Fund-(IDCW) 60 50.97
Canara Robeco Equity Hybrid Fund-(M-IDCW) 60 49.06
ICICI Prudential Multi-Asset Fund(IDCW-Payout) 61 45.46
HSBC Balanced Advantage Fund-(IDCW-Payout) 59 37.63
Edelweiss Equity Savings Fund-(M-IDCW) 54 36.23
ICICI Prudential Equity & Debt Fund(M-IDCW Payout) 55 34.64
Aditya Birla Sun Life Balanced Advantage Fund(IDCW-Payout) 60 32.87
Edelweiss Aggressive Hybrid Fund-(IDCW) 43 32.35
Axis Equity Saver Fund-(M-IDCW) 50 31.90
Axis Triple Advantage Fund-(IDCW) 40 30.17
HSBC Equity Savings Fund-(M-IDCW Payout) 54 26.20
Kotak Equity Arbitrage Fund(M-IDCW Payout) 60 24.66
ICICI Prudential Balanced Advantage Fund(M-IDCW Payout) 58 24.33
DSP Dynamic Asset Allocation Fund-(M-IDCW) 49 23.85
HDFC Arbitrage-(M-IDCW) 51 23.83
HDFC Arbitrage-(IDCW) 49 23.56
HSBC Arbitrage Fund-(M-IDCW Payout) 54 21.31
Axis Arbitrage Fund-(IDCW) 44 21.16
ICICI Prudential Equity-Arbitrage Fund(IDCW-Payout) 46 20.99
Aditya Birla Sun Life Arbitrage Fund(IDCW) 45 20.12
IDFC Arbitrage Fund-(M-IDCW) 59 19.85
IDFC Equity Savings Fund-(M-IDCW) 47 12.76

Source: ACE MF, Data for period February 15 2018 to February 15 2023

HDFC Balanced Advantage Fund(IDCW) has offered the highest returns from dividends ( 64.55%) and gave around 57 dividends during the period of analysis. The scheme offered a total return of 78.05% during the five year horizon based on NAV. The second in the list was Edelweiss Balanced Advantage Fund-(M-IDCW) which offered a return of 54.13% from dividend and gave around 59 dividends during the period. The scheme offered 60.79% returns during the five-year horizon.

The scheme that gave the highest number of dividends was ICICI Prudential Multi-Asset Fund (IDCW-Payout). The scheme gave around 61 dividends during the period of analysis, but it could offer only around 45.46% return from dividend.



READ SOURCE

This website uses cookies. By continuing to use this site, you accept our use of cookies.