HDFC Dividend Yield Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 21, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
HDFC Dividend Yield Fund Direct Growth Plan is at a NAV of ₹26.484 as of 18 Sep 2026, with scheme AUM of ₹5,587 Cr. Its 1-year, 3-year and 5-year returns are -2.22%, 10.43% and 13.46% respectively, and it sits in the High Risk category.
Our view is that this is a fund for investors who can tolerate equity volatility and are comfortable with a dividend-yield style portfolio that still carries meaningful market risk. The long-term record is stronger than the latest year, but the recent stretch has been softer than the 3-year and 5-year pattern.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹26.484 as of 18 Sep 2026 |
| AUM | ₹5,587 Cr |
| Expense Ratio | 0.69% |
| Launch Date | 18 Dec 2020 |
| Min SIP | ₹100 |
| Risk Category | High Risk |
| Benchmark | Nifty 50 |
| Fund Category | Equity |
| Exit Load | 1% on or before 1Y, Nil after 1Y |
| Fund Managers | Gopal Agrawal |
The fund is managed by Gopal Agrawal.
Source data date: as of 18 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -2.16% | -3.73% |
| 3M | -0.84% | -3.14% |
| 1Y | -2.22% | -5.31% |
| 3Y | 10.43% | 6.3% |
| 5Y | 13.46% | 5.79% |
The recent performance has been mixed but not weak relative to the benchmark. Over 1 month, 3 months and 1 year, the fund stayed less negative than NIFTY 50, which tells us it held up better during a softer market phase. That relative resilience matters because the fund’s latest year is still below zero, even if the benchmark was weaker.
The longer view is more encouraging. The 3-year return of 10.43% and the 5-year return of 13.46% are both ahead of the benchmark’s 6.3% and 5.79% over the same periods. That gap suggests the fund has created better compounding over fuller market cycles than the benchmark index in this period.
The pattern is not perfectly smooth, though. The time path shows a noticeable mid-period drawdown followed by recovery, then a softer patch again in the most recent stretch. For investors, that means the fund has rewarded patience over time, but it has not been immune to shorter-term reversals. The current year looks weaker than the multi-year trend, so recent momentum should not be read as the full story.
Source data date: as of 18 Sep 2026
Should you BUY or HOLD HDFC Dividend Yield?
A fund’s past returns alone don’t tell you whether you should buy it today or continue holding it.
The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.
Already holding HDFC Dividend Yield? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| HDFC Dividend Yield Fund Direct Growth Plan | -2.22% | 10.43% | 13.46% |
| Tata Dividend Yield Fund Direct Growth Plan | 9.75% | 14.5% | 13.8% |
| LIC MF Dividend Yield Fund Direct Growth Plan | 5.76% | 18.53% | 15.47% |
| SBI Dividend Yield Fund Direct Growth Plan | 1.93% | 10.67% | Data not available |
| Aditya Birla SL Dividend Yield Fund Direct Growth Plan | 1.46% | 11.82% | 13.23% |
| Baroda BNP Paribas Dividend Yield Fund Direct Growth Plan | 0.48% | Data not available | Data not available |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
Against the peer set, the fund’s 1-year return is weaker than the better recent performers, especially Tata Dividend Yield Fund Direct Growth Plan and LIC MF Dividend Yield Fund Direct Growth Plan. That places the latest year in a softer light, even though the fund still beat the benchmark over the same horizon.
The longer-term picture is more balanced. Its 3-year and 5-year returns are ahead of some peers such as SBI Dividend Yield Fund Direct Growth Plan and Aditya Birla SL Dividend Yield Fund Direct Growth Plan, but still behind Tata Dividend Yield Fund Direct Growth Plan and LIC MF Dividend Yield Fund Direct Growth Plan on both horizons. Short-term and longer-term comparisons therefore tell slightly different stories: recent softness, but respectable multi-year compounding.
Source data date: as of 18 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| ICICI Bank Ltd. | Bank | 5.58% |
| HDFC Bank Ltd.£ | Bank | 4.82% |
| Axis Bank Ltd. | Bank | 3.72% |
| Larsen and Toubro Ltd. | Infrastructure | 2.68% |
| Bharti Airtel Ltd. | Telecom | 2.55% |
| Maruti Suzuki India Limited | Automobile & Ancillaries | 2.35% |
| Kotak Mahindra Bank Limited | Bank | 2.33% |
| Reliance Industries Ltd. | Crude Oil | 2.29% |
| Tech Mahindra Ltd. | IT | 2.26% |
| Sun Pharmaceutical Industries Ltd. | Healthcare | 2.2% |
The largest holding, ICICI Bank Ltd., is 5.58%, which is meaningful but not extreme for a diversified equity fund. The tenth holding, Sun Pharmaceutical Industries Ltd., is 2.2%, so the decline from the top position to the tenth is gradual rather than abrupt. That suggests the portfolio is not built around one dominating position.
The top 10 holdings together account for about 30.78% of the portfolio, and the fund discloses 70 holdings in total. In our view, that points to a reasonably broad spread of stock-specific risk beyond the largest names, while still leaving the top holdings influential enough to shape returns. The bank-heavy first few positions may cause the fund to react to financial-sector conditions more than a very evenly spread portfolio would.
Because there are more holdings beyond the top 10, the long tail likely matters as well. The displayed names show exposure across banks, infrastructure, telecom, auto, crude oil, IT and healthcare, which may help diversify company-specific risk even if sector balance is not the same as an index fund. For investors, the key takeaway is that this is not a single-stock style portfolio, but the large positions still matter.
To see all holdings, visit the HDFC Dividend Yield Fund Direct Growth Plan page
Source data date: as of 18 Sep 2026
Who should invest
This fund suits investors who can handle High Risk equity exposure and are willing to stay invested for at least a medium-to-long horizon. The 3-year and 5-year results are much better than the 1-year result, so the fund has historically needed time to show its edge.
The main trade-off is clear: you may get better longer-term compounding than the benchmark, but the ride can be uneven in shorter windows. Investors who want steady near-term outcomes may find the recent swings uncomfortable, while those who can accept volatility may value the fund’s longer-term pattern and diversified stock mix.
Tax and exit load
| Holding period | Tax rate | Description |
|---|---|---|
| Units held less than 1 year | 20% | Short-term capital gains tax |
| Units held more than 1 year | 12.5% | Long-term capital gains tax |
Exit load: 1% on units sold on or before 1 year; nil after 1 year.
Source data date: as of 18 Sep 2026
Frequently asked questions
What is the current NAV of HDFC Dividend Yield Fund Direct Growth Plan?
The current NAV is ₹26.484 as of 18 Sep 2026.
How has HDFC Dividend Yield Fund Direct Growth Plan performed over 1 year, 3 years and 5 years?
Its 1-year return is -2.22%, the 3-year return is 10.43%, and the 5-year return is 13.46%. That mix shows a weaker recent year and stronger longer-term compounding.
How does the fund compare with NIFTY 50?
The fund has outperformed NIFTY 50 over 3 years and 5 years, with returns of 10.43% versus 6.3% and 13.46% versus 5.79%. Over 1 year, it has also been less negative than the benchmark.
How does the fund compare with peer dividend-yield funds?
Its latest 1-year return trails the stronger recent peer numbers, but its 3-year and 5-year returns are still competitive against several peers. The longer-term picture is stronger than the latest year.
What is the minimum SIP for this fund?
The minimum SIP is ₹100.
Who manages the fund and what is the exit load?
The fund is managed by Gopal Agrawal. The exit load is 1% on units sold on or before 1 year, and nil after 1 year.
Bottom line
HDFC Dividend Yield Fund Direct Growth Plan has a softer latest year, but its 3-year and 5-year returns remain stronger than the benchmark and more consistent with a fund that can compound over time. Compared with peers, it is not the strongest recent performer, yet its longer-term numbers stay competitive. The portfolio is fairly spread out across 70 holdings, with the top positions influential but not overwhelming. That makes it a fit for investors who accept High Risk equity exposure and can wait through uneven shorter-term periods.
Published on 21 September 2026 at 9:32 AM IST
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RIA disclosure
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.