Mutual fund
In the last one year, markets have been mostly flats. The reason for this has been many political events and announcements of Trump’s tariffs. Apart from this, the income of corporate companies was also not special and the money of foreign investors is going out continuously. Because of this, the index kept revolving a little. In such an environment, flexicap funds were noticed, because they can invest in different company sizes and also show attractive options.
But there is another great option, which investors can keep in mind. This is ICICI Prudential Dividend Yield Equity Fund. It is understood from the name that meditation will be on the companies giving dividend. But its real feature is how ICICI Prudential manages it.
Claim of good growth in long term
Generally dividend yield funds focus on the same companies that give more dividends. But by doing this, the capital application is less in the long term. Because of this, returns are also less than average. ICICI Prudential Dividend Yield Equity Fund is different from other funds because it invests in companies that not only give stable dividends but also promises good growth in the long term. The fund has been given full freedom in market cap and management style. Therefore, it is performing better than its benchmark and other funds in the mid-to-long term.
Returned so much
ICICI Prudential Dividend Yield Equity Fund has performed well in its category and performed well. This was not only better than its benchmark Nifty 500 TRI but also overtook the rest of the funds. By 31 August 2025, in the last 1, 3, 5 and 10 years, it has given 3-9% better returns from benchmark and 2-6% better returns from category average. The fund is going on since May 2014. If an investor would have been Rs 10,000 every month from the beginning, then by August 2025, his investment value would have been around Rs 41.3 lakh, ie CAGR (XIRR) would have become 18.7%. At the same time, if the NIFTY 500 TRI was invested in the same amount, it would have been Rs 32.6 lakh, ie CAGR would have been 14.9%.
How is the fund in the risk case
On the 5 -year returns from January 2018 to August 2025, this fund leaves its benchmark behind and gives great returns. When it comes to the measurement of risk, this fund performs well in many cases. The sharp ratio, which explains the risk-adjustable returns of the fund, is 0.49, which is much higher than the average of the category. Sortino ratio and Jenson Alpha have the same situation.
These companies increase investment
ICICI Prudential Dividend Yield Equity Fund has complete freedom to invest according to the market cap. In the last years, the share of large cap stocks has been quite high. From the beginning to the middle of 2024, when mid and small caps were doing good, 30-35% of the portfolio was of mid and small caps. But after June 2024, the funds reduced exposure from small caps and increased investment in stable big cap companies.
These companies invest
Mitul Kalavadia, senior fund manager of ICICI Prudential, says that in 2020, the funds of the fund in 2020 were in information technology, pharmaceutical and power companies which were also giving dividend yields with the right growth. Because of this, the fund performed well. Later, exposure in IT and Pharma sector was reduced when the growth in growth. After that, the allocation in the bank sector was increased, due to which the fund performed well despite the market correction from September 2024. Automobiles, power, oil, gas and consumer fuels are also important components of the fund portfolio. Companies with strong fundamentals of all these sectors, which are prone to growth and get proper dividend yields, form the rest of the fund equity allocation.
Fund protection during market correction
The fund periodically keeps about 5-11% of its portfolio in cash, debts and other assets, so that the fund has also given a fine downside during market correction. Keeping this structure in mind, investors can choose this fund for SIP and make it a major part of their portfolio.
Disclaimer: The purpose of this article is only to give information. Do not consider it the advice of TV9 related to investment. Before taking any kind of financial steps, please consult your financial expert.