Franklin India Dividend Yield Fund Celebrates 20th Anniversary With AUM Crossing The Rs 2300 Crore Mark
Mumbai : Franklin Templeton Mutual Fund managed Franklin India Dividend Yield Fund (erstwhile Templeton India Equity Income Fund) has completed 20 years of creating wealth for investors with a dual milestone of its assets crossing the Rs 2,300 crore assets under management (AUM) mark.
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.
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 scheme has also demonstrated the long-term benefits of disciplined investing through systematic investment plans (SIPs). A monthly SIP of Rs 10,000 invested since inception would have grown to more than Rs 1.2 crore by the end of April 2026.
On the occasion of the fund completing 20 years, Rajasa Kakulavarapu, Portfolio Manager for Franklin India Dividend Yield Fund said, “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”.
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.
International Diversification Enhances Portfolio Resilience
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.
Dynamic Allocation Across Market Caps
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.
Higher Dividend Yield Compared with Broader Markets
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.
