A peek into Principal Dividend Yield Fund performance

Principal Dividend Yield Fund is one of the best performing dividend yield funds in the category and has managed to outperform the benchmark indices.

Dividend Yield Funds are those funds that invest in stocks that have a higher dividend yield compared to the BSE or Nifty dividend yield.

The fund has following as top holdings:Hindustan Unilever, Hero Motocorp, SBI, HPCL, BPCL, HDFC Bank, Maruti Suzuki, Dalmia Bharat, Infosys, Colgate Palmolive, ICICI Bank and ONGC.

The fund is the best performer in the category when  you consider one year period where the fund has generated 12.96 per cent returns. Over longer term the fund has been a consistent performer with annualised returns over three years being recorded at 16.10 per cent and that for five year period recorded at 14.14 per cent.

The fund has delivered good returns in up market years such as 2015 and 2012 by recording 44.93 per cent returns and 41.94 returns respectively.  However, in down market year like 2011 the fund delivered negative 26.84 returns.

This fund is apt for those conservative investors who are focusing on building wealth over long term.