ICICI Prudential Dividend Yield Equity Fund has outperformed its peers with a 17% compound annual growth rate over the last three years. While it holds the lead for this long-term period, data shows that performance rankings often shift when looking at shorter timeframes like one month or one year.
The ICICI Prudential Dividend Yield Equity Fund has emerged as the top performer among its peer group over a three-year period, delivering a compound annual growth rate (CAGR) of 17.0%. This performance, based on data as of August 9, 2026, places it ahead of other prominent funds in the category, such as the UTI Dividend Yield Fund, which posted 14.6%, and the Franklin India Dividend Yield Fund, which returned 12.6% over the same three-year window.
Beyond just leading its peers, the fund has demonstrated strong performance against its benchmark, the Nifty 500 TRI. According to recent reports, the fund outperformed this benchmark by 7.9 percentage points over the three-year period. Even on a shorter one-year basis, the fund showed positive momentum, outperforming its benchmark by 3.4 percentage points. The fund, which is managed by Mittul Kalawadia, holds approximately ₹6,630 crore in assets under management. Its portfolio strategy is focused on equity-related instruments of dividend-paying companies, with top holdings including major stocks like HDFC Bank, ICICI Bank, and Sun Pharmaceutical Industries.
While these long-term numbers appear strong, investors should keep in mind that performance in the mutual fund sector can change significantly depending on the time period measured. For instance, the SBI Dividend Yield Fund has been observed leading in performance over shorter durations, such as one month, three months, and the one-year timeframe. This variability highlights why investors should not rely solely on a single period’s return data when evaluating the consistency of a fund's performance.
Dividend yield funds are inherently thematic, meaning they concentrate on companies that pay regular dividends. This approach comes with specific risks. Market cycles can significantly impact these funds, as dividend-paying sectors may fall in or out of favour with broader market trends. Additionally, these are classified as equity-oriented funds, which generally carry a very high risk rating. Investors should also be aware that returns are never guaranteed and depend on the underlying stock performance within the portfolio. The decision to invest should align with one’s personal risk appetite and investment horizon rather than chasing recent top performers alone.