Best Dividend Mutual Funds to Invest now!!!!

When it comes to good returns, equity markets are not the only securities that give good returns. Some Mutual Funds are providing good returns along with considerable capital appreciation.

In today’s article we shall see 5 such Mutual Funds. So here are the picks:

1)      Franklin India Prima Fund (Dividend) Regular and Direct:
This Mutual Funds has been around for a long time now and has a NAV of Rs 69.122 and Rs 72.979 respectively. The funds are well diversified and its major holdings in portfolio include Yes Bank, Finolex Cables, Equitas Holdings, HDFC Bank etc. What is important to note is that the company is a Dividend fund and has paid a considerable amount of dividend throughout its history. Previous year the MF distributed a divided of Rs 5.5, which is more than 7.5% return tax free at current NAV. More to be noted is that the MF most of the occasions distributed dividends during June or July. The timing is very apt for some good dividends and a higher capital growth in the future.

2)      SBI Magnum Midcap Fund Direct Plan (Dividend)
This fund is relatively new and has risen from Rs 19 to Rs 47.479 in 4 years. Over the years the MF has given a Dividend of Rs 5, 4.8 and 3.5 in the years 2013, 2015 and 2016 respectively. Considering last years dividend of Rs 3.5, the return is more than 7.25% tax free at current NAV. Last year the MF gave its dividend in the month of June. Hoping the same for this year as well, it’s a good time to invest in this fund. Major stocks in the funds portfolio are Carborundum Universal, Strides Shasun, Ramco Cement, CIFC etc.

3)      ICICI Prudential R.I.G.H.T. Fund (Dividend)
Now this is an ELSS fund. Yes we will not miss out on those asking for 80C deductions. For people who want to claim deduction u/s 80C of the Income Tax Act and also earn good returns, this is the best MF for them. Its NAV is Rs 25.670 and the last dividend paid by this MF is Rs 2. The return on investment by dividend would be more than 7.5% tax free at current NAV. The fund has consistently distributed its dividend in the month of July. Looking forwards for the same in the current year as well. In December 2016 the funds NAV was Rs 20.85 and in 6 months it has given a good 25% return to Rs 25.670. Major stocks in the portfolio are Motherson Sumi, HDFC Bank, Maruti Suzuki, Britiannia etc.

4)      Birla Sun Life Advantage Fund (Dividend)
This is again a very long and old fund started in the year 1995. Over the past 5 years the Fund has given more than 25% return. Its NAV is currently at Rs 106.65. The fund has given a dividend of Rs 7.47 in the last year. Now that’s almost 7% tax free return on current NAV. For the past 3 years the Fund has been giving dividends in August or September. Hoping for the same for this year as well. Some of the major stocks in this fund are Yes Bank, Maruti Suzuki, Eicher Motors, Natco Pharma etc.

5)      L&T Midcap Fund - Direct Plan (Dividend)
Another fund with good returns is from the family of L&T. This is a mid cap fund and was set up in 2013. Ever since it was set up the NAV has come up from Rs 19 to Rs 50.140 currently. Also to note is that every year the fund has given a dividend of average Rs 3 and last year it gave a dividend of Rs 3.5. The fund has consistently given dividends in the month of August. If they continue then you get dividend in 2 months. Major stocks in their portfolio are Shree Cement, IndusInd Bank, Federal Bank, Dollar Ind, etc.

So friends these are our best picks for the best dividend mutual funds. Enjoy investing. Keep earning.

Thanks for joining us. Have a nice day.

-RicherInvestor

Written by Roger Vins (CA, MCom)

Disclosure
Investments in mutual funds are subject to market risks. Please read the scheme related documents carefully before investing. 

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