Best Dividend Yield Mutual Funds
Dividend yield funds favour companies that pay consistent, above-average dividends. They tend to tilt toward established, cash-generative businesses.
Top dividend yield mutual funds by 3Y returns
9Direct plan, Growth option — ranked by 3-year CAGR. Open a fund for NAV history, rolling returns, risk metrics and peer rank.
As of 05 Oct 2026, LIC MF Dividend Yield Fund (Direct plan, Growth option) leads dividend yield mutual funds on 3-year CAGR at +17.60%, followed by ICICI Prudential Dividend Yield Fund at +13.65% and Tata Dividend Yield Fund at +13.02%. Across 12 dividend yield mutual funds the category averaged +11.70% over three years, at an average expense ratio of 1.30%. All figures are computed from public AMFI NAV history and recomputed daily; past returns do not predict future ones.
| 1 | LIC MF Dividend Yield Fund LIC | ★★★★☆ | +3.4% | +17.6% | — | 0.97% | ₹675.68Cr |
| 2 | ICICI Prudential Dividend Yield Fund ICICI Prudential | ★★★★★ | -5.6% | +13.7% | +14.6% | 0.76% | — |
| 3 | Tata Dividend Yield Fund Tata | ★★★☆☆ | +6.5% | +13.0% | +12.7% | 0.79% | ₹1,049Cr |
| 4 | UTI - Dividend Yield Fund UTI | ★★★☆☆ | -4.7% | +11.6% | +9.4% | 1.54% | ₹3,728Cr |
| 5 | Aditya Birla Sun Life Dividend Yield Fund Aditya Birla Sun Life | ★☆☆☆☆ | -0.8% | +10.4% | +12.2% | 1.94% | ₹1,457Cr |
| 6 | Franklin India Dividend Yield Fund Franklin Templeton | ★★★☆☆ | -3.9% | +10.3% | +11.3% | 1.38% | ₹2,297Cr |
| 7 | HDFC Dividend Yield Fund HDFC | ★★★☆☆ | -3.3% | +10.0% | +12.1% | 0.87% | ₹5,632Cr |
| 8 | SBI Dividend Yield Fund SBI | ★★☆☆☆ | -0.1% | +10.0% | — | 1.12% | ₹8,349Cr |
| 9 | Sundaram Dividend Yield Fund Sundaram | ★★☆☆☆ | -6.7% | +8.7% | — | 1.26% | ₹782.23Cr |
NAV data as of 05 Oct 2026. Returns are CAGR for periods ≥1 year, computed from AMFI NAV history. Ratings are WealthTicker’s own, ranked within sub-category peers — not a SEBI or agency rating. See our methodology for every formula. This is data, not investment advice.
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Frequently asked questions
What are dividend yield mutual funds?
Dividend yield funds favour companies that pay consistent, above-average dividends. They tend to tilt toward established, cash-generative businesses.
Which is the best dividend yield fund right now?
LIC MF Dividend Yield Fund by LIC currently ranks first among dividend yield mutual funds by 3-year CAGR at +17.60%. Rankings move with NAVs — past returns don't guarantee future performance.
What returns have dividend yield mutual funds given?
The category has averaged -1.68% over 1 year, +11.70% annualized over 3 years, +12.05% annualized over 5 years — peer averages over the live funds in the category, computed from AMFI NAV history.
How are dividend yield mutual funds taxed?
Equity taxation: gains within 1 year are short-term and taxed at 20%; beyond 1 year, long-term gains above ₹1.25 lakh a year are taxed at 12.5%.