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Dividend Yield Mutual Fund

About

A Dividend Yield Fund (also called Dividend Yield Mutual Fund) is a type of equity-oriented mutual fund that primarily invests in stocks of companies with a strong history of paying dividends. The objective is to provide investors with regular income (via dividends from underlying stocks) and potential capital appreciation over the long term. These funds focus on companies with relatively high dividend yields compared to the broader market.

Fund Type

Key Features

finance
Income-Focused Strategy – Invests in companies paying consistent dividends
Mutual Fund
Dual Benefit – Potentially earns both dividends (income) and capital appreciation.
Resilient
Lower Downside Volatility – Dividend-paying companies are often financially stable, helping moderate risk.
finance
Flexible Options – Offers Growth or IDCW (income distribution) plans depending on investor preference.

Taxation

STCG

Holding Period ≤ 12 months, 20% Tax on Gain

LTCG

Holding Period > 12 months, 12.5% Tax on Gain

Dividends Tax

1.25 Lakh on LTCG in financial year

Exemption Limit

1.25 Lakh on LTCG in financial year

Indexation

No Indexation

Allocation

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Dividend Yield Stocks Equity
65%
Other
35%

Locked in Period

Nill

Exit Load

An exit load of 1% is generally applicable if units are redeemed within 12 months. However, the exact structure may vary based on the specific scheme

Risk Associated

Riskometer Very High

Find the funds

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing. Past performance is not indicative of future performance.