Franklin Templeton Mutual Fund managed Franklin India Dividend Yield Fund (erstwhile Templeton India Equity Income Fund) has turned Rs 10,000 monthly SIP invested since inception to more than Rs 1.2 crore in 20 years as of April 2026 and the AUM of the fund has crossed Rs 2,300 crore in the same period.
The fund, which follows a dividend yield-oriented equity investing strategy, has delivered benchmark outperformance across multiple long-term periods, including over the last 15 years and since inception, compared with the Nifty Dividend Opportunities 50 Index, according to a press release by the fund house.
The fund invests predominantly in companies with relatively higher dividend yields, aiming to generate superior risk-adjusted returns over market cycles.
An investment of Rs 1 Lakh made at the inception of the scheme would have grown nearly 13 times to approximately Rs 13.60 lakh as of April 30, 2026, translating into a compounded annual growth rate (CAGR) of 13.97%. In comparison, the same investment in the Nifty 500 TRI would have grown to approximately Rs 10.3 lakh during the same period, delivering a CAGR of 12.39%.
“The fund targets steady compounding with downside protection across cycles by seeking companies with consistent and rising dividend payout track records. These often trade at undemanding valuations offering rerating potential as well,” said Rajasa Kakulavarapu, Portfolio Manager for Franklin India Dividend Yield Fund.
The investment strategy combines: Dividend yield-focused stock selection, Diversification across sectors and market capitalisations, Select international equity exposure, Opportunistic allocation to REITs for periodic income generation.
The fund maintains a diversified portfolio of fewer than 50 stocks across sectors such as: Banking and financial services, Power and energy, Information technology, FMCG, Aerospace and defence, Automobiles, Telecom, Consumer durables, Oil and gas.
The fund also allocates a portion of its portfolio to international equities, providing diversification across geographies, investment ideas and valuation opportunities. For overseas investments, the fund leverages the global research capabilities of Franklin Templeton known for its value-oriented investment approach. As of April 2026, the fund had approximately 8% exposure to international equities across markets including the United States, South Korea and Taiwan.
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The fund dynamically adjusts exposure across market capitalisations while maintaining a strong large-cap bias. Over the last 12 months, the portfolio maintained average allocations of: 54% in large-cap stocks,11% in mid-cap stocks, 13% in small-cap stocks. The fund also had over 9% allocation across four listed Real Estate Investment Trusts (REITs) as of April 2026.
Over the past 12 months, the portfolio delivered an average dividend yield of 2.71%, significantly higher than the 1.17% dividend yield of the Nifty 500 Index. India’s dividend investing theme continues to gain traction as investors increasingly seek a combination of long-term capital appreciation, portfolio stability and regular income potential.
In this context, the Franklin India Dividend Yield Fund aims to provide investors with exposure to dividend-paying businesses diversified across sectors, market caps and geographies, making it a potential long-term investment solution for investors seeking a blend of growth, income visibility and portfolio diversification.
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