Sundaram Dividend Yield Fund
Direct · GrowthAI Summary
Sundaram Dividend Yield Fund has delivered strong long-term SIP XIRR of 16.13% over 10Y and 15.67% over 5Y, consistently beating the NIFTY 50 on a lump-sum basis with positive alpha across all windows (2.59% to 4.44%). However, it trails the category average SIP XIRR across most periods, lagging by roughly 1.3-1.8 percentage points at 3Y, 5Y, 7Y, and 10Y horizons. Recent performance is soft, with 1Y XIRR of 8.72% versus the category's 9.91%, and calendar year 2026 showing -9.98%.
The fund exhibits defensive characteristics with beta below 1 across all periods (0.78 to 0.92) and downside capture consistently below its upside capture, such as 85.71% downside versus 91.01% upside over 5Y. Risk-adjusted returns are solid, with Calmar ratios stable around 0.46-0.52 across horizons and positive alpha at nearly every window. The 1Y alpha of -1.83% and 2026's -9.98% return indicate the fund is not immune to broad market corrections.
The portfolio holds 51 stocks with a dividend-focused tilt toward high-yield sectors, led by Banks at 17.0% (HDFC Bank 4.87%, ICICI Bank 4.62%, SBI 3.76%), followed by Power and IT-Software at 9.6% each. Top holdings include NTPC, Coal India, Power Grid, and ONGC, reflecting the mandate's income orientation. Diversification is reasonable with no single stock above 5% of NAV, though the combined exposure to banks, power, and oil-linked sectors creates meaningful cyclical concentration.
Against category peers, the fund underperforms on SIP XIRR at most horizons, trailing the 5Y category average of 17.51% with its own 15.67%. Its edge lies in benchmark outperformance, with 3Y, 5Y, 7Y, 10Y, and 12Y fund CAGRs all exceeding NIFTY 50 CAGRs by roughly 2.5-4 percentage points. Long-term consistency is a hallmark, with rolling 5Y, 7Y, 10Y, and 12Y mean returns clustered tightly between 15.04% and 15.64%.
This fund suits conservative-to-moderate investors seeking equity exposure with lower volatility than the broad market, given its sub-1 beta and favorable downside capture profile. A horizon of 5-7 years or more is appropriate, as the fund's best returns emerge over long holding periods. Investors should tolerate periods of underperformance versus both the category and the index, as seen in the current 1Y and 2026 weakness.
- Consistent long-term outperformance versus NIFTY 50, with positive alpha across 3Y to 15Y windows, peaking at 4.44% over 7Y
- Defensive risk profile with beta of 0.78-0.92 and downside capture consistently below upside capture, cushioning market falls
- Stable rolling returns of 15.04%-15.64% across 5Y to 12Y windows, indicating dependable long-term compounding
- SIP XIRR trails the category average at 1Y, 3Y, 5Y, 7Y, and 10Y horizons, lagging the 5Y category average of 17.51% by 1.84 percentage points
- Recent weakness with 1Y XIRR of 8.72% and calendar 2026 return of -9.98%, alongside a negative 1Y alpha of -1.83%
Generated on 31-10-2026, 2:15 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 | ₹12.64 L | 17.7% | -49.9% | 85.6% |
| 3 Years | ₹36.00 L | ₹45.08 L | 15.4% | -18.4% | 34.6% |
| 5 Years | ₹60.00 L | ₹88.44 L | 15.7% | -4.9% | 28.4% |
| 7 Years | ₹84.00 L | ₹1.46 Cr | 15.7% | 1.1% | 23.3% |
| 10 Years | ₹1.20 Cr | ₹2.76 Cr | 16.1% | 11.7% | 20.2% |
| 12 Years | ₹1.44 Cr | ₹3.90 Cr | 15.3% | 12.2% | 18.2% |
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 | 17.7% | 14.3% | 9.9% | +3.4% |
| 3 Years | 15.4% | 11.0% | 16.2% | +4.4% |
| 5 Years | 15.7% | 10.4% | 17.5% | +5.3% |
| 7 Years | 15.7% | 10.6% | 17.1% | +5.2% |
| 10 Years | 16.1% | 11.4% | 17.1% | +4.7% |
| 12 Years | 15.3% | 11.3% | 15.8% | +3.9% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 16.9% | 12.4% | -27.2% | 87.0% | 0.52 | 1.64 | 79% | — | — |
| 3 Years | 15.8% | 16.4% | -2.6% | 31.8% | 1.73 | 10.22 | 100% | — | — |
| 5 Years | 15.6% | 16.2% | 2.1% | 28.3% | 1.92 | 35.45 | 100% | — | — |
| 10 Years | 15.6% | 15.7% | 12.6% | 18.8% | 6.73 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | -2.20 | 0.78 | 78.7% | 79.4% | -9.2% | -10.9% |
| 3 Years | +2.84 | 0.92 | 92.8% | 88.8% | 9.3% | 6.4% |
| 5 Years | +3.57 | 0.89 | 90.9% | 85.8% | 8.9% | 5.2% |
| 7 Years | +4.37 | 0.85 | 87.7% | 82.5% | 13.8% | 10.0% |
| 10 Years | +3.04 | 0.86 | 88.7% | 84.6% | 12.8% | 10.3% |
| 12 Years | +3.41 | 0.87 | 89.9% | 85.4% | 12.1% | 9.0% |
| 15 Years | +2.55 | 0.87 | 90.4% | 86.7% | 11.6% | 9.4% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | HDFC Bank Ltd | 4.87% |
| 2 | ICICI Bank Ltd | 4.62% |
| 3 | NTPC LTD | 4.05% |
| 4 | State Bank of India | 3.76% |
| 5 | Coal India Ltd | 3.37% |
| 6 | Power Grid Corporation of India Ltd | 3.01% |
| 7 | Oil & Natural Gas Corporation Ltd | 2.98% |
| 8 | Somany Ceramics Ltd | 2.85% |
| 9 | Tech Mahindra Ltd | 2.82% |
| 10 | Infosys Ltd | 2.80% |