Top Dividend-Paying ELSS Funds: A 10-Year Review

Dividend-Focused ELSS Funds: A Consistent Income Stream

Dividend-focused mutual funds are a great option for investors seeking regular income without taking on excessive risk. These funds invest in companies that pay substantial dividends, providing a steady stream of returns. By diversifying their investments across various stocks, these funds help mitigate the risk associated with single-sector exposure.

Top 3 Dividend-Yielding ELSS Funds

Fund Name	Scheme Launch	Trailing 10-year Annual Dividend Yield (%)
ICICI Prudential ELSS Tax Saver Fund	19-08-1999	10.29
Sundaram Diversified Equity (ELSS)	22-11-1999	7.98
Axis ELSS Tax Saver Fund	29-12-2009	7.83

In-Depth Analysis of Top Performers
ICICI Prudential ELSS Tax Saver Fund
Established in 1999, this fund has a well-diversified portfolio and has delivered a commendable compound annual growth rate (CAGR) of 17.74% since inception. With a total dividend payout of Rs 72.81 per unit over the past decade, it’s a solid choice for investors seeking both growth and income.
Sundaram Diversified Equity (ELSS)
Launched in 1999, this fund has shown consistent returns and a total dividend payout of Rs 47.76 per unit over the past decade. Its CAGR of 15.01% is indicative of its solid performance.
Axis ELSS Tax Saver Fund
A relatively newer entrant in the market, established in 2009, this fund has rapidly gained popularity due to its strong performance. With a CAGR of 15.56% and a total dividend payout of Rs 24.43 per unit, it’s a promising option for investors.
Key Considerations When Investing in Dividend-Focused ELSS Funds
Dividend Yield: Look for funds with a consistent history of high dividend payouts.
Fund Management: Evaluate the experience and track record of the fund manager.
Portfolio Diversification: Ensure the fund invests in a diversified range of stocks to mitigate risk.
Expense Ratio: Compare the expense ratios of different funds to identify the most cost-effective options.
Risk Tolerance: Assess your risk tolerance before investing in equity-linked funds.

Conclusion:

All three funds mentioned above have demonstrated their ability to provide both growth and income, making them attractive choices for investors looking to maximize their returns while enjoying tax benefits. However, it’s essential to conduct thorough research or consult with a financial advisor before making any investment decisions.