Top Monthly Dividend Hybrid Mutual Funds for Investors
Investing in mutual funds has become an increasingly popular choice for investors looking to achieve a balanced growth in their portfolios. Hybrid mutual funds, which combine both equity and debt investments, have garnered a lot of attention recently, particularly for their dividend distributions. Among these hybrid funds, some deliver particularly impressive monthly dividends, attracting investors who prioritize steady income streams. This article delves into the top five monthly dividend hybrid mutual funds and provides insights on why they are considered among the best in their category.
Top 5 Peer Comparison of Monthly Dividend Hybrid Mutual Funds
Here's a comparative analysis of the top five hybrid mutual funds known for their monthly dividend payouts:
SBI Debt Hybrid Fund - Dividend Monthly
The SBI Debt Hybrid Fund is renowned for its robust dividend payouts. It certainly stands out with a monthly yield of 13.42% and a distribution yield of 6.84%. This fund has been a favorite among investors due to its consistent and timely dividend payouts, making it a popular choice for those who value regular and reliable income.
ICICI Prudential Regular Savings Fund - Dividend Monthly
Another standout in the hybrid fund category is the ICICI Prudential Regular Savings Fund, which offers a monthly dividend yield of 10.60% and a distribution yield of 8.24%. This fund earns its place in the top list for its exceptional performance and consistent dividend payouts.
Kotak Debt Hybrid Fund Regular - Dividend Monthly
Kotak Debt Hybrid Fund Regular is yet another fund that impresses with its dividend offers, providing a 13.40% monthly yield and 7.81% distribution yield. It has established itself as a steady income provider, catering to investors seeking regular monthly payouts without compromising on returns.
Indiabulls Savings Income Fund Regular - Dividend Monthly
The Indiabulls Savings Income Fund Regular is often highlighted for its monthly dividend yield of 5.88%. While it's slightly lower compared to the other funds mentioned, it still delivers a respectable return and is well-regarded for its regular and dependable dividend payouts.
Baroda Conservative Hybrid Fund - Dividend Monthly
Baroda Conservative Hybrid Fund rounds out the top five with a monthly yield of 13.31%. This fund offers a balanced approach to investing, combining debt and equity assets to provide investors with consistent dividend payments.
Why HDFC Balanced Advantage Fund is a Top Choice
While the funds mentioned above are renowned for their monthly dividend payouts, there are other strategies to consider. For instance, if monthly returns are your primary focus, it might be more beneficial to invest in a growth fund rather than dividend-paying equity funds, which are taxed at 10%. Instead, investing in a growth fund and beginning a Systematic Withdrawal Plan (SWP) after one year can be a prudent strategy.
If you are looking for a fund that provides both growth and regular income, the HDFC Balanced Advantage Fund is highly recommended. Known previously as HDFC Prudence Fund, this hybrid mutual fund now divests 16% of its assets into debt, making it a balanced investment option. It has a dividend history that is among the best in the market, offering 0.3 rupees per Net Asset Value (NAV), which roughly translates to 1% per month, equating to 12% per annum. This fund's dividend payout is consistently credited post 25th of every month, year after year.
Conclusion
In conclusion, the hybrid mutual funds listed here are excellent choices for investors seeking regular monthly dividend payouts. Whether you prioritize consistently high monthly yields or a balanced approach with a mix of growth and regular income, there is a fund that can meet your needs. HDFC Balanced Advantage Fund stands out for its robust dividend history and balanced portfolio.
If you're interested in understanding more about these funds or have any other queries, feel free to share your views and feedback. As an investor in this fund, I can assure you that the regular monthly dividend payouts provide a reliable and consistent income stream.