HDFC Dividend Yield Fund
Direct · GrowthAI Summary
HDFC Dividend Yield Fund has delivered strong alpha over NIFTY 50 across most periods, with a 3Y XIRR of 19.25% versus a benchmark 3Y CAGR of 6.22% and alpha of 4.60%. Its 3Y XIRR also beats the category average of 16.17%, though the 5Y XIRR of 13.67% trails the category average of 17.51%. The 1Y XIRR of 9.72% is broadly in line with the category average of 9.91%, indicating recent performance has been more muted.
The fund shows defensive characteristics with downside capture below 100% across all periods (83.35% to 93.41%), meaning it has historically fallen less than the NIFTY 50 in down markets. Risk-adjusted returns are solid, with Calmar ratios above 0.85 at 1Y, 3Y, and 5Y, and a 3Y Calmar of 1.07. However, the fund has experienced 2 drawdown events exceeding 10%, and the maximum drawdown duration of 157 days with no recorded recovery suggests investors should be prepared for extended recovery periods.
The portfolio is well diversified across 119 holdings, with the top 10 positions accounting for roughly 30% of NAV. Banks dominate at 21.0% of assets, led by ICICI Bank (5.38%), HDFC Bank (4.97%), and Axis Bank (3.72%), creating meaningful financial sector concentration. The remaining top holdings span construction, telecom, IT, automobiles, and pharmaceuticals, providing reasonable sector balance beyond financials.
The fund outperforms the category on SIP XIRR over 3Y (19.25% vs 16.17%) but lags over 5Y (13.67% vs 17.51%), indicating mixed consistency versus peers. Calendar year returns show strong dispersion, from 43.99% in 2021 and 38.87% in 2023 to -5.61% in 2026 and 0.72% in 2020. Its persistent positive alpha versus NIFTY 50 across 1Y to 15Y horizons supports the case for sustained benchmark outperformance.
This fund suits investors seeking a dividend-yield-oriented equity strategy with lower downside capture than the broad market, making it appropriate for moderately risk-tolerant investors. A minimum horizon of 5 years is advisable given the drawdown history and the mixed 5Y category positioning. It can serve as a core or diversifying holding for investors comfortable with significant bank sector exposure.
- Consistent positive alpha versus NIFTY 50 across all periods from 1Y to 15Y, including 7.04% over 5Y
- Downside capture consistently below 100% (83.35% to 93.41%), demonstrating defensive behavior in falling markets
- 3Y SIP XIRR of 19.25% comfortably beats the category average of 16.17%
- Heavy bank sector concentration at 21.0% of the portfolio exposes investors to financial sector risk
- 5Y SIP XIRR of 13.67% trails the category average of 17.51%, indicating weaker long-horizon relative performance
- Two drawdown events exceeding 10% and a 157-day maximum drawdown duration with no recorded recovery
Generated on 31-10-2026, 2:20 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 | ₹12.74 L | 17.8% | -23.3% | 60.7% |
| 3 Years | ₹36.00 L | ₹46.89 L | 19.3% | -0.4% | 36.7% |
| 5 Years | ₹60.00 L | ₹82.47 L | 13.9% | 9.0% | 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 | 17.8% | 14.3% | 9.8% | +3.5% |
| 3 Years | 19.3% | 11.0% | 16.1% | +8.3% |
| 5 Years | 13.9% | 10.4% | 17.5% | +3.5% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 18.3% | 12.6% | -7.8% | 51.2% | 0.69 | 3.16 | 87% | — | — |
| 3 Years | 21.3% | 20.5% | 9.3% | 31.9% | 2.73 | — | 100% | — | — |
| 5 Years | 17.1% | 16.8% | 11.6% | 22.1% | 3.82 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +2.56 | 0.92 | 90.8% | 86.7% | -7.0% | -10.9% |
| 3 Years | +4.27 | 0.99 | 99.0% | 93.4% | 10.7% | 6.4% |
| 5 Years | +6.79 | 0.94 | 96.3% | 87.7% | 12.0% | 5.2% |
| 7 Years | +6.37 | 0.89 | 93.6% | 83.3% | 14.3% | 8.1% |
| 10 Years | +4.10 | 0.89 | 93.6% | 83.3% | 9.8% | 5.6% |
| 12 Years | +3.26 | 0.89 | 93.6% | 83.3% | 8.1% | 4.7% |
| 15 Years | +2.42 | 0.89 | 93.6% | 83.3% | 6.5% | 3.7% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI Bank Ltd. | 5.38% |
| 2 | HDFC Bank Ltd.£ | 4.97% |
| 3 | Axis Bank Ltd. | 3.72% |
| 4 | Larsen and Toubro Ltd. | 2.64% |
| 5 | Bharti Airtel Ltd. | 2.62% |
| 6 | Kotak Mahindra Bank Limited | 2.45% |
| 7 | Reliance Industries Ltd. | 2.25% |
| 8 | Tech Mahindra Ltd. | 2.24% |
| 9 | Maruti Suzuki India Limited | 2.20% |
| 10 | Sun Pharmaceutical Industries Ltd. | 2.14% |