How do I know which funds are giving the best dividends

Firstly congratulations on a fantastically designed website! It is far more powerful then any website that I have seen on MFs and I do come to your website for some preliminary analysis. I was going through the website , and was not sure if I there are inconsistencies or is that I am screening inappropriately. While going through best dividend schemes (consistent across multiple years), I came across the following schemes, with supposedly high yields: Principal Emerging Bluechip – Dividend, Mirae Asset India Equity Fund – Dividend, SBI Magnum Multicap Fund – Direct – Dividend, DSP Equity Fund – Direct, BOI AXA Large & Midcap Fund - Regular Plan – Regular - Dividend, BOI AXA Large & Midcap Fund - Eco Plan - Regular – Dividend. However, while going through the dividend history sheets, I was not able to see BOB Axa at all in the dividend history with % yield, additionally it seemed to have relatively less yield compared to the % shown differently in your other web pages. I think the only consistent ones were Principal Emerging Bluechip / Mirae Asset which featured in both cases (across most periods). I was wondering, if you could guide in the analysis for enabling me to create a consistent and sure shot shortlist of MFs having best returns across most periods for the following criteria (across all types of equity MFs). a) High dividend yield % MFs ( I am targeting > 12-15% annual dividend yield returns, if feasible) - Max 5 schemes, b) Lumpsum - Max 5 schemes, c) SIP MFs - Max 5 schemes. Will look forward to your guidance on how to go about the same?

Feb 3, 2019 by Naresh Raisinghani,   |   Mutual Fund

At the outset I thank you for your kind words about our website.

Please note that top dividend fund are shorted on the basis of dividend yields https://www.advisorkhoj.com/mutual-funds-research... That means, the fund which has the highest dividend yield will be on the number 1 position and so on. However, if you want to see the historical dividends of any fund you will have to refer this tool https://www.advisorkhoj.com/mutual-funds-research... - you can see the BOI AXA Large and Mid Cap Fund dividends here.

Please also note that in the top dividend paying funds page we are showing trailing 3 years annual dividend yield whereas in the historical dividend we are showing the yield on each dividend declared.

While coming to consistency of dividend payments, you must note that since dividend payments are not assured, you should not plan your future cash flow planning on the basis of this. Dividends are paid from the profit made by the fund or from the surpluses and is totally at the discretion of the fund manager/AMC. Moreover, AMCs have to pay dividend distribution tax (DDT) on mutual fund dividends which is ultimately a cost to the investor. Therefore, you should invest in growth options only.

In case you want regular cash flow, you can depend on systematic investment plans (SWPs). You can invest in lump sum and draw a fixed amount through SWP every month. In this context, please check the following -

https://www.advisorkhoj.com/licmf...

https://www.advisorkhoj.com/miraeasset...

https://www.advisorkhoj.com/mutual-funds-research...

With regards to choosing top funds, you may refer to the following link -

https://www.advisorkhoj.com/mutual-funds-research...

Hope you find the above answer useful. Wishing you the best.

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