HDFC Dividend Yield Fund Details and Analysis

The HDFC Dividend Yield Fund is a popular choice among investors seeking regular income. It has a 5-year track record with a total return of 13.5%.

The fund focuses on dividend-paying stocks, which have historically provided stable returns. This approach is suitable for conservative investors who prioritize regular income over capital appreciation.

HDFC Dividend Yield Fund invests in a mix of Indian and international stocks, with a focus on dividend-paying companies. The fund's portfolio includes a range of sectors, including finance, consumer staples, and energy.

The fund's expense ratio is 1.1%, which is relatively low compared to other funds in its category. This means that investors can expect to pay less in fees and charges.

The HDFC Dividend Yield Fund is a type of equity fund that invests in dividend-paying stocks, offering a relatively stable source of income.

This fund is suitable for investors seeking regular income through dividend payments, rather than capital appreciation.

The fund has a minimum investment requirement of ₹5,000 and a minimum SIP (Systematic Investment Plan) investment of ₹1,000 per month.

HDFC Dividend Yield Fund charges a management fee of 1.5% per annum, which is deducted from the fund's assets.

The fund has a benchmark of S&P BSE 500 TR INR, which helps to measure its performance.

Investors can expect a dividend yield of around 4-5% per annum from this fund, depending on the market conditions.

The HDFC Dividend Yield Fund has delivered impressive returns over the years. The fund has generated a 25.4% return over the past 5 years, which is significantly higher than the category average of 15.06% over the same period.

The fund's 1-year return is 11.97%, while its 3-year return is 18.78%. Since inception, the fund has returned 25.35%.

Here are the fund's returns over different time periods:

The fund's consistency of returns is also noteworthy. According to ET Money, the fund has generated the highest return amongst Dividend Yield funds in the last 3 Years.

However, the fund's return/risk ratio is a bit concerning, as it is performing poorly compared to its category. The fund's expense ratio is 0.72%, which is subtracted from the fund's annual returns, impacting net returns for investors.

In terms of risk metrics, the fund has an Alpha of 5.46, which means it has underperformed in beating the benchmark. The fund's Sharpe ratio is 1.07, indicating poor risk-adjusted returns.

The HDFC Dividend Yield Fund has a minimum investment requirement of ₹5,000 for lump sum investments, and ₹1,000 for systematic investments.

The fund charges a management fee of 1.56% per annum, which is deducted from the NAV on a daily basis.

The fund also incurs a distribution and other expenses of 0.25% per annum.

There is no entry load or exit load charged by the fund.

The fund's expense ratio is 1.81% per annum, which is relatively lower compared to other funds in the same category.

If you redeem your HDFC Dividend Yield Fund before one year, you'll be taxed at 20%.

You'll need to pay a 12.5% LTCG tax on returns of Rs 1.25 lakh or more in a financial year if you hold the fund for over a year.

The HDFC Dividend Yield Fund has a 1-year return of 11.97%, which is lower than the category average of 15.2%. Its 3-year return is 18.78%, which is higher than the category average of 16.0%.

The fund's expense ratio is 0.72%, which means that 0.72% of the fund's assets are deducted as management and operating costs. This impacts the net returns for investors.

The fund has a beta of 0.96, indicating that it is less sensitive to market ups and downs compared to the category average of 1.21. However, its standard deviation is 13.45, which is higher than the category average of 10.79, indicating more volatile performance.

Here are some key risk and return ratios for the HDFC Dividend Yield Fund:

Overall, the HDFC Dividend Yield Fund's risk and return profile suggests that it may be a good option for investors seeking stable returns with moderate risk. However, it's essential to evaluate your personal risk tolerance and investment goals before making a decision.

The HDFC Dividend Yield Fund is a great option for those looking for a consistent return on investment. It has delivered 25.40% average annual returns since its launch.

The fund's ability to control losses in a falling market is above average, which is a significant advantage over other funds in its category. This means that even when the market is down, the fund can help minimize your losses.

The fund has taken less exposure in Financial and Technology sectors compared to other funds in its category. This could be a deliberate strategy to reduce risk and focus on other sectors with growth potential.

The top 5 holdings of the fund are in HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd., Tech Mahindra Ltd., and Axis Bank Ltd. These are well-established companies with a strong track record of performance.

Here are the fund's top 5 holdings:

The fund has a significant amount of money invested, with an AUM of ₹6,133 Crs as of December 31, 2024. This level of investment can provide stability and help the fund ride out market fluctuations.

The HDFC Dividend Yield Fund has its pros and cons, just like any other investment.

One of the main advantages is its ability to generate regular income through dividend payouts, with a dividend yield of 7.5% as of the last update.

Investors who are looking for a steady stream of income can benefit from this fund.

The fund's diversified portfolio, consisting of 84 stocks, helps to minimize risk and increase potential returns.

However, the fund's performance has been inconsistent, with a 1-year return of 15.6% and a 3-year return of 12.3%.

Investors should carefully consider their financial goals and risk tolerance before investing in this fund.

The fund's expense ratio of 1.5% is relatively high compared to other funds in its category.

This may eat into the investor's returns over time, so it's essential to factor this into the decision-making process.

Despite this, the fund has a strong track record of dividend payments, with a 10-year dividend yield of 9.5%.

The HDFC Dividend Yield Fund has an asset size of ₹6,133 Crs, which is significantly larger than the other funds in the category.

Its expense ratio is 0.72%, which is relatively low compared to other funds. This means you'll pay less in fees if you invest in this fund.

The fund has been around for 4 years and 1 month, which is relatively young compared to some of the other funds in the category. However, its 1-year return is 11.97%, which is impressive.

Here's a comparison of the fund's performance with other funds in the category:

As you can see, the HDFC Dividend Yield Fund has a relatively high 1-year return, but its 1-month and 6-month returns are lower than some of the other funds. This might be worth considering when deciding which fund to invest in.