Synopsis– Dividend Yield Mutual Funds primarily spend money on these shares which supply excessive dividend payouts relative to their market worth. Amid Market volatility and rising demand in small cap, mid cap and flexi cap mutual funds, conventional dividend yield mutual funds have delivered good outcomes. Beneath is the checklist of the highest 5 finest performing dividend yield mutual funds in 2025.
Listed below are the checklist of high performing Dividend Yield Mutual Funds of 2025:
1. ICICI Prudential Dividend Yield Fairness Fund Direct Progress
- 5 12 months SIP XIRR: 26.21%
- Minimal Lumpsum Funding: ₹5,000
- Minimal SIP Funding: ₹100
- Fund Dimension (AUM): ₹5,644 Cr (as on 14-07-2025)
- Expense Ratio: 0.57%
- NAV: ₹58.58
- With highest return among the many high 5, this fund stays favorite within the dividend yield MF phase.
2. LIC MF Dividend Yield Fund Direct Progress
- 5 12 months SIP XIRR: 22.49%
- Minimal Lumpsum Funding: ₹5,000
- Minimal SIP Funding: ₹200
- Fund Dimension (AUM): ₹613 Cr (as on 14-07-2025)
- Expense Ratio: 0.63%
- NAV: ₹33.56
- This fund with a small Fund Dimension has given nice returns and outperformed benchmark Nifty 500 TRI with good margin.
3. Aditya Birla Solar Life Dividend Yield Fund Direct Progress
- 5 12 months SIP XIRR: 20.74%
- Minimal Lumpsum Funding: ₹1,000
- Minimal SIP Funding: ₹100
- Fund Dimension (AUM): ₹1,523 Cr (as on 14-07-2025)
- Expense Ratio: 1.42%
- NAV: ₹493.27
- This Fund with highest NAV has outperformed NIFTY 500 TRI.
4. Franklin India Dividend Yield Fund Direct Progress
- 5 12 months SIP XIRR: 20.18%
- Minimal Lumpsum Funding: ₹5,000
- Minimal SIP Funding: ₹500
- Fund Dimension (AUM): ₹2,421 Cr (as on 14-07-2025)
- Expense Ratio: 1.23%
- NAV: ₹152.10
- This fund has a superb giant cap dividend focus with diversification throughout sectors.
5. UTI Dividend Yield Fund Direct Progress
- 5 12 months SIP XIRR: 19.94%
- Minimal Lumpsum Funding: ₹5,000
- Minimal SIP Funding: ₹500
- Fund Dimension (AUM): ₹4,127 Cr (as on 14-07-2025)
- Expense Ratio: 1.40%
- NAV: ₹191.62
- A big fund dimension, most popular by traders focusing yield and sectorial unfold.
- The Fund Benchmark is NIFTY 500 TRI and it gave a 5 yr SIP XIRR return of 17.4%
Additionally learn: Prime Performing Excessive-Threat Funds That Delivered Excessive Returns in 2025 – Are They in Your Portfolio?
Why Dividend Yield Mutual Funds
- Decreased Volatility: These funds spend money on firms which are mature and financially secure, decreasing the volatility publicity of the portfolio.
- Improved Market Corrections: Dividend paying shares are inclined to carry out higher within the occasions of the market decline.
- Dividend Reinvesting: Compounding advantages by way of dividend reinvesting.
- Acceptable to Conservative Traders: A superb choice to traders preferring publicity in fairness however play protected.
Desk Displaying Prime 5 Dividend Yield Funds in 2025
| Fund Identify | 5-Yr SIP XIRR (%) | Fund Dimension (₹ Cr) | ER (%) | NAV (₹) | Min. Lump Sum (₹) | Min. SIP (₹) |
| ICICI Pru Dividend Yield Fairness Direct Progress | 26.21% | 5,644 | 0.57 | 58.58 | 5,000 | 100 |
| LIC MF Dividend Yield Fund Direct Progress | 22.49% | 613 | 0.63 | 33.56 | 5,000 | 200 |
| Aditya Birla SL Dividend Yield Direct Progress | 20.74% | 1,523 | 1.42 | 493.27 | 1,000 | 100 |
| Franklin India Dividend Yield Direct Progress | 20.18% | 2,421 | 1.23 | 152.10 | 5,000 | 500 |
| UTI Dividend Yield Fund Direct Progress | 19.94% | 4,127 | 1.40 | 191.62 | 5,000 | 500 |
Last Ideas
Outdated Faculty funding methods like Dividend Yield Mutual Funds have confirmed that it may possibly ship robust returns. For traders searching for a mixture of capital appreciation, enjoying it protected and constant dividend earnings, these funds provide reliability and good returns. Select mutual funds as per your aim and danger urge for food.
Written by Prajwal Hegde
