HDFC Dividend Yield Fund: 47% Returns, Portfolio Analysis, Holdings And More

HDFC Dividend Yield Fund – Investment Strategy

The HDFC Dividend Yield Fund focuses on companies with a record of paying dividends or performing buybacks in at least one of the three preceding financial years. The fund manager emphasizes trailing dividend yield but also considers business fundamentals, industry outlook, absolute and relative valuations, growth outlook, and corporate governance. The fund is classified under the ‘Very High Risk’ category.

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HDFC Dividend Yield Fund – Performance 

Growth 

  • 1 Year: 47.74%
  • 2 Years: 74.33%
  • 3 Years: 96.49%
  • Since Inception: 136.53%

SIP Returns

  • 1 Year: 20.84% (Annualized: 40.54%)
  • 2 Years: 39.54% (Annualized: 35.66%)
  • 3 Years: 50.86% (Annualized: 28.58%)

HDFC Dividend Yield Fund – Portfolio Composition

Top Holdings

  1. HDFC Bank Ltd.
    • Sector: Private sector bank
    • % of Total Holdings: 6.06%
    • Quantity: 20.36 L
  2. ICICI Bank Ltd.
    • Sector: Private sector bank
    • % of Total Holdings: 4.36%
    • Quantity: 20.00 L
  3. Larsen & Toubro Ltd.
    • Sector: Civil construction
    • % of Total Holdings: 3.42%
    • Quantity: 4.79 L
  4. National Thermal Power Corporation Ltd. (NTPC)
    • Sector: Power generation
    • % of Total Holdings: 2.79%
    • Quantity: 40.00 L
  5. Reliance Industries Ltd.
    • Sector: Refineries & marketing
    • % of Total Holdings: 2.78%
    • Quantity: 5.00 L
  6. Infosys Ltd.
    • Sector: Computers – software & consulting
    • % of Total Holdings: 2.73%
    • Quantity: 10.00 L

Risk Ratios

  • Standard Deviation: 13.11 (High volatility)
  • Beta: 0.93 (High volatility)
  • Sharpe Ratio: 1.27 (Better risk-adjusted returns compared to category average)
  • Treynor’s Ratio: 0.18 (Better risk-adjusted returns compared to category average)
  • Jension’s Alpha: 6.58 (Better risk-adjusted returns compared to category average)

HDFC Dividend Yield Fund – Comparative Performance 

Category 1 D 1 M 3 M 6 M YTD 1 Y 2 Y 3 Y 5 Y
This Fund 0.27% 6.26% 5.91% 17.25% 12.60% 45.02% 32.71% 24.63% 0.00%
Nifty 50 -0.13% 5.46% 3.49% 10.92% 7.03% 25.14% 19.79% 13.89% 14.28%
Benchmark: Nifty 500 TRI 0.20% 6.72% 7.31% 17.11% 12.73% 38.42% 26.99% 18.50% 18.70%
Category Average 0.27% 6.62% 7.03% 20.63% 15.54% 46.93% 31.70% 22.82% 21.84%
Category Rank 4/7 5/9 5/9 7/9 8/9 6/9 4/8 2/8 0/0
Best in Category 0.50% 9.18% 11.98% 27.81% 23.53% 55.63% 35.57% 28.02% 23.60%
Worst in Category 0.11% 4.44% 4.27% 17.01% 12.55% 37.08% 27.22% 19.73% 19.51%

HDFC Dividend Yield Fund – Tax Treatment

  • Long-term Capital Gains (sold after 1 year): 10% tax if gains exceed ₹1 lakh.
  • Short-term Capital Gains (sold before 1 year): 15% tax

 

Disclaimer: The information provided in this article is for educational and informational purposes only. It should not be considered investment advice or a recommendation to invest in any particular mutual fund or asset class. Past performance does not indicate future results, and investors should research and consult with a financial advisor before making investment decisions. Investing in mutual funds involves risks, including the possible loss of principal invested.