Dividend yield funds in India

12 live funds in the Dividend Yield category, ordered by 5-year return, highest first; ICICI Prudential Dividend Yield Fund leads. Funds younger than five years follow by name. Returns are for the plan each fund's page leads with, Direct where the fund has one, to each fund's latest NAV, the newest of them on 27 Oct 2026; 3 and 5 year returns are a year, compounded.

Category median, 1 year
−6.63%Middle of 10 funds
Category median, 3 years
+10.93%Middle of 9 funds
Category median, 5 years
+11.45%Middle of 8 funds

Dividend Yield funds

Size is the average money the fund managed over its latest quarter. Cost is its yearly expense ratio.Filter them in the screener

NAV of 27 Oct 2026

Tax on dividend yield funds

Gains on units held over 12 months are taxed at 12.5% above ₹1.25 lakh a year; gains on units held 12 months or less at 20%.

Rules in force from 23 Jul 2024, checked 27 Oct 2026. Surcharge and cess are not included.

About dividend yield funds in India

Dividend yield funds in India are open-ended equity mutual funds that invest mainly in shares of companies paying dividends. SEBI lists dividend yield as its own category of equity scheme, with at least 80% of assets in equity and equity-related instruments.

What dividend yield means

Dividend yield is the dividend a company pays in a year divided by its share price, shown as a percentage. A share priced at ₹200 that pays ₹6 a year yields 3%. A fund in this category picks stocks with that measure in mind, so its portfolio leans toward companies with a record of paying dividends.

What SEBI requires

SEBI's category rules require the scheme to invest predominantly in dividend yielding stocks and keep at least 80% of total assets in equity and equity-related instruments. SEBI's circular of 26 Feb 2026 raised that floor from 65%. SEBI sets no market-cap split, so a fund can hold large, mid and small companies. The rest can sit in money market and other liquid instruments, gold, silver or InvITs within SEBI limits.

Payouts and tax

The category name describes the stocks held, not what the fund pays out. The fund is not required to distribute any income. Dividends it collects from companies are normally reflected in its NAV (net asset value, the price of one unit) in the growth option. The IDCW option (income distribution cum capital withdrawal) pays out money only when the fund house declares it, and the amount can vary or be nil.

With at least 65% of assets in Indian equities, a dividend yield fund counts as equity-oriented for tax. Gains on units sold within 12 months are taxed at 20%. Gains on units held longer are taxed at 12.5% above ₹1.25 lakh of long-term gains in a financial year, an exemption shared across all equity shares and equity funds.

Dividend yield, value and contra funds

SEBI also keeps value funds, which follow a value investment strategy, and contra funds, which follow a contrarian strategy. All three need 80% in equity, so what separates them is the stock-selection rule. A fund house may run only one dividend yield fund.

How this page lists the funds

The page lists every live fund in the category, ordered by 5-year return, highest first. Returns are for each fund's lead plan, the Direct plan (no distributor commission) where there is one, run to its latest NAV. The 3-year and 5-year returns are compounded yearly. Funds under five years old follow, by name. The columns also show size (average assets over the latest quarter) and the yearly expense ratio. The category median for 1, 3 and 5 years is the middle return among funds that have that figure, so each median can rest on a different number of funds.