Although past returns of a mutual fund scheme do not guarantee future returns, they set the tone of future expectations from it.
Here, we explore the high-performing dividend yield mutual funds and select only those which delivered more than 20 per cent annualised return in the past five years. This means if someone had invested only ₹1 lakh in a scheme five years ago, the investment would have grown to ₹2,48,832 by rising at a CAGR (compound annual growth rate) of 20 per cent a year.
Dividend yield funds
Dividend yield mutual funds refer to those funds which predominantly invest in dividend-yielding stocks, with at least 65 per cent allocation to equity.
Incidentally, this category of mutual funds (dividend yield) is not too popular among investors. There are only 10 such schemes with a total asset size of ₹32,558 crore across all fund houses.
(Source: AMFI; regular returns as on 26 Aug, 2025)
As we can see from the table above, ICICI Prudential dividend yield fund (DYF) delivered the highest return of 27.40 per cent, followed by Franklin India DYF, which gave a 23.56 per cent.
Other schemes which gave more than 20 per cent annualised return are Aditya Birla Sun Life Dividend Yield Fund, and dividend yield funds by LIC MF and UTI.
Past returns
We should note that past returns do not guarantee future returns. This means just because a scheme has given exceptional returns in the past, it does not necessarily mean it will continue to give high returns in future as well.
Conversely, poor returns in the past do not mean that the scheme can’t outperform in future. Other key criteria which investors can consider include the reputation of the fund house, past performance of the fund manager (in active funds), macroeconomic considerations, category of fund, among others.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision.
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