Top 2 Dividend Yield Mutual Funds: One-Time Investment of ₹10 Lakh Jumped Up to ₹45.47 Lakh

When investing, finding the right balance between growth and stability can be challenging. Growth-oriented funds may offer high returns but often come with higher volatility. On the other hand, conservative funds offer more stability but may fall short on returns.

Dividend yield mutual funds aim to bridge this gap. They invest in companies that consistently pay dividends, indicating strong financial health, while also offering potential for capital appreciation over the long term.

Why Consider Dividend Yield Mutual Funds?

These funds typically focus on well-established companies known for their profitability and commitment to shareholder returns. Such companies tend to distribute a portion of their earnings as dividends and also reinvest profits for future growth.

As a result, dividend yield funds provide a dual benefit: a steady stream of dividend income and long-term wealth creation through market appreciation.

2 Funds That Delivered Impressive Long-Term Returns

Let’s take a closer look at 2 dividend yield mutual funds that have significantly rewarded long-term investors. A one-time investment of ₹10 lakh in either of these funds 10 years ago would have grown more than fourfold:

Data as of March 27, 2025. 

The performance reflects the strength of combining dividend-paying stability with long-term equity growth potential.

Conclusion

While all investments carry risk, dividend yield mutual funds offer an avenue for investors seeking income and growth in a single package.

As always, one should consider their financial goals, time horizon, and risk appetite before investing.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.