HDFC Dividend Yield Fund
Direct · GrowthAI Summary
HDFC Dividend Yield Fund has delivered strong SIP XIRR of 18.55% over 1Y and 20.49% over 3Y, beating the category averages of 15.59% and 16.95% respectively, though its 5Y XIRR of 14.60% trails the category average of 16.84%. Against the NIFTY 50, the fund has generated consistent positive alpha across all periods, including 5.87% over 3Y and 7.67% over 5Y, with lump-sum CAGRs of 13.62% (3Y) and 15.42% (5Y) versus benchmark returns of 7.75% and 7.83%. Calendar year returns show strong upside years such as 43.99% in 2021 and 38.87% in 2023, but muted performance recently with 3.88% in 2025 and -0.4% in 2026 so far.
The fund demonstrates strong downside protection with downside capture of 88.69% (1Y), 87.85% (5Y), and 83.43% (10Y) versus the NIFTY 50, meaning it falls less than the benchmark in weak markets. It has experienced only 2 drawdown events exceeding 10%, with the maximum drawdown lasting 157 days, and Calmar ratios above 0.91 across 1Y, 3Y, and 5Y indicate reasonable risk-adjusted returns. Beta below 1 (0.89-0.95 across periods) confirms the fund is less volatile than the benchmark, consistent with its dividend-yield orientation.
The portfolio is well diversified across 118 holdings, with the top 10 positions accounting for roughly 30% of NAV and no single stock exceeding 5.58% (ICICI Bank). Banks dominate at 21.2% of the portfolio, followed by IT-Software (7.1%), Automobiles (7.0%), and Pharmaceuticals (6.3%), giving it a meaningful tilt toward large-cap financials including HDFC Bank, Axis Bank, and Kotak Mahindra Bank. The presence of dividend-rich names like L&T, Bharti Airtel, Maruti Suzuki, and Reliance aligns with the fund's dividend yield mandate.
The fund outperforms the category on SIP XIRR over 1Y (18.55% vs 15.59%) and 3Y (20.49% vs 16.95%), but underperforms over 5Y (14.60% vs 16.84%), suggesting recent performance is stronger than its longer-term SIP record. Its consistent positive alpha versus the NIFTY 50 across 1Y through 15Y windows, ranging from 2.55% to 7.67%, points to durable stock selection rather than a single lucky period. The low downside capture across long horizons reinforces its positioning as a relatively defensive performer within the dividend yield category.
This fund suits investors seeking a defensive large-cap oriented equity fund with lower downside capture and steady alpha, rather than aggressive high-beta growth. A time horizon of at least 5 years is appropriate, as the 5Y lump-sum CAGR of 15.42% and long-term alpha demonstrate the benefit of patience through muted years like 2020 and 2025. Moderate risk tolerance is sufficient given the fund's beta below 1 and limited drawdown events, but investors should be comfortable with sector concentration in banks.
- Consistent positive alpha versus NIFTY 50 across all measured periods, including 7.67% over 5Y and 5.87% over 3Y
- Strong downside protection with downside capture of 83.43% over 10Y and 87.85% over 5Y, cushioning losses in weak markets
- SIP XIRR of 18.55% (1Y) and 20.49% (3Y) comfortably ahead of category averages of 15.59% and 16.95%
- 5Y SIP XIRR of 14.60% trails the category average of 16.84%, indicating weaker longer-term SIP performance
- Heavy sector concentration in Banks at 21.2% of NAV exposes the portfolio to financial sector downturns
- Recent calendar year returns have been muted, with 3.88% in 2025 and -0.4% in 2026 year-to-date
Generated on 11-09-2026, 3:21 AM. Verify before investing.
Gives more importance to longer time periods (10Y, 20Y) than shorter ones (1Y, 3Y). This balances out recent outperformance and gives a more realistic picture of what long-term returns might look like.
The largest peak-to-trough decline in the fund's NAV. Shows the worst-case loss an investor would have experienced at any point in the fund's history.
If you invested ₹1,00,000 every month via SIP, here's how this fund has historically performed across different time horizons.
| Duration | Invested | Median Value | XIRR | Min XIRR | Max XIRR |
|---|---|---|---|---|---|
| 1 Year | ₹12.00 L | ₹12.78 L | 18.5% | -23.3% | 60.7% |
| 3 Years | ₹36.00 L | ₹47.21 L | 20.5% | 0.9% | 36.7% |
| 5 Years | ₹60.00 L | ₹83.17 L | 14.6% | 10.1% | 19.4% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY 50 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 18.5% | 14.4% | 15.6% | +4.1% |
| 3 Years | 20.5% | 11.1% | 16.9% | +9.4% |
| 5 Years | 14.6% | 10.4% | 16.8% | +4.2% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 19.1% | 13.5% | -7.8% | 51.2% | 0.75 | 3.78 | 89% | — | — |
| 3 Years | 22.1% | 20.9% | 13.2% | 31.9% | 3.26 | — | 100% | — | — |
| 5 Years | 18.2% | 17.7% | 15.4% | 22.1% | 6.05 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +5.27 | 0.95 | 96.2% | 88.7% | 2.9% | -2.9% |
| 3 Years | +5.87 | 1.00 | 102.6% | 95.2% | 13.6% | 7.8% |
| 5 Years | +7.67 | 0.94 | 97.3% | 87.8% | 15.4% | 7.8% |
| 7 Years | +6.67 | 0.89 | 94.3% | 83.4% | 15.3% | 8.9% |
| 10 Years | +4.30 | 0.89 | 94.3% | 83.4% | 10.5% | 6.1% |
| 12 Years | +3.42 | 0.89 | 94.3% | 83.4% | 8.7% | 5.1% |
| 15 Years | +2.55 | 0.89 | 94.3% | 83.4% | 6.9% | 4.0% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI Bank Ltd. | 5.58% |
| 2 | HDFC Bank Ltd.£ | 4.82% |
| 3 | Axis Bank Ltd. | 3.72% |
| 4 | Larsen and Toubro Ltd. | 2.68% |
| 5 | Bharti Airtel Ltd. | 2.55% |
| 6 | Maruti Suzuki India Limited | 2.35% |
| 7 | Kotak Mahindra Bank Limited | 2.33% |
| 8 | Reliance Industries Ltd. | 2.29% |
| 9 | Tech Mahindra Ltd. | 2.26% |
| 10 | Sun Pharmaceutical Industries Ltd. | 2.20% |