The number
The median dividend yield fund returned -2.22% in the year to 1 October 2026 and 10.90% a year over three years. Of the 10 funds with a one-year record, four made money and six did not.
On both clocks the category beat large-cap funds (-4.71% and 8.88%) and tracked close to value funds (-1.73% and 11.28%).
All figures are for the Direct plan, Growth option, computed from daily NAVs to 1 October 2026 (30 September for some funds). Returns of a year or more are compounded annual rates. There are 12 funds in the category.
Against the neighbours
| Median fund | Funds | 1 year | 3 years (a year) |
|---|---|---|---|
| Value | 24 | -1.73% | 11.28% |
| Dividend Yield | 12 | -2.22% | 10.90% |
| ELSS | 49 | -2.09% | 10.85% |
| Flexi Cap | 46 | -0.34% | 11.03% |
| Large Cap | 35 | -4.71% | 8.88% |
Dividend yield funds sit with value, flexi-cap and ELSS funds, not with large caps. Over three years the whole group is within half a point (10.85–11.28%), while large-cap funds are about 2 points behind.
The funds
| Fund (Direct, Growth) | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| LIC MF Dividend Yield | 4.35% | 17.48% | ||
| ICICI Prudential Dividend Yield | -5.60% | 13.13% | 15.05% | 14.87% |
| Tata Dividend Yield | 6.50% | 12.59% | 12.87% | |
| UTI Dividend Yield | -4.49% | 11.24% | 9.73% | 13.28% |
| Aditya Birla Sun Life Dividend Yield | 1.14% | 10.90% | 12.45% | 12.38% |
| Franklin India Dividend Yield | -2.94% | 10.59% | 11.49% | 14.20% |
| SBI Dividend Yield | 0.47% | 9.81% | ||
| HDFC Dividend Yield | -3.04% | 9.61% | 12.51% | |
| Sundaram Dividend Yield | -6.33% | 8.28% | ||
| Baroda BNP Paribas Dividend Yield | -1.51% |
Kotak and WhiteOak Capital also run dividend yield funds, but they launched too recently to have a one-year return.
The longer record
Nine funds have three years, with a median of 10.90% a year (8.28% to 17.48%). Six have five years: median 12.48% a year, from 9.73% (UTI) to 15.05% (ICICI Prudential). Four have ten years: median 13.74%, from 12.38% to 14.87%.
ICICI Prudential Dividend Yield is the interesting case: top of the longer table (15.05% over five years, 14.87% over ten) but second-from-bottom over the latest year at -5.60%. Tata Dividend Yield is the reverse: the best one-year return (6.50%) with a good, but not leading, longer record.
Risk
The median volatility was 13.29%, the same as large-cap funds (13.30%) and below mid-cap (16.18%) and small-cap funds (16.98%). The shallowest worst-three-year falls were at ICICI Prudential and Franklin India (both 15.9%); the deepest were at Aditya Birla Sun Life (20.7%), LIC MF and Tata (both 20.4%).
Reading this
"Dividend yield" describes what the fund buys — shares with a high dividend yield — not how it pays you; in the Growth option the dividends stay inside the NAV. The category is small, so the median moves with two or three funds, and its edge over large-cap funds this year is a few points of return, not a structural gap.
For the index-level yield picture, see the Nifty dividend yield in October 2026, and for the neighbouring categories value and contra fund returns.
Returns are historical and computed from NAVs; they are not a forecast. Past returns do not indicate future performance.
Frequently asked questions
How have dividend yield funds performed over the last year?
The median dividend yield fund (Direct plan, Growth option) lost 2.22% in the year to 1 October 2026, across 10 funds with a one-year record. Four were positive and six negative; the range ran from -6.33% (Sundaram) to 6.50% (Tata).
Do dividend yield funds beat large-cap funds?
Over the last year and three years, yes on the median: -2.22% and 10.90% a year against -4.71% and 8.88% for large-cap funds.
How many dividend yield funds are there?
There are 12 in the category, but two are too new to have a one-year return, and only 9 have a three-year record.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are as of the dates stated and can be revised by their source.
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