These Flexi Cap Mutual Funds Paid The Highest Dividends Over The Last Three Years

Flexi Cap Mutual Funds invest across large-, mid- and small-cap stocks, offering diversification and flexibility.

Here's a look at the top five schemes with the highest trailing three-year dividend yield and why investors should not rely on dividend history alone.

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Key points generated by AI, verified by newsroom

• Flexi Cap funds invest across all market capitalizations.
• HDFC, PGIM Flexi Cap funds show top dividend yields.
• Investors should not solely rely on historical dividend yield.

Mutual Funds have become one of the most popular investment options among Indian investors. They allow investors to participate in the stock market without having to pick individual stocks. However, mutual funds are available in different categories, each designed to suit different investment goals and risk appetites. One such category is Flexi Cap Funds, which offer fund managers the freedom to invest across Large-Cap, Mid-Cap and Small-Cap stocks. 

What are Flexi Cap Mutual Funds?

Flexi Cap Funds are equity mutual funds that invest across companies of all market capitalisations. Unlike large-cap or mid-cap funds, these schemes are not restricted to a particular segment of the market. As per SEBI regulations, Flexi Cap Funds must invest at least 65 per cent of their assets in equities and equity-related instruments. The remaining allocation can be adjusted based on market conditions and the fund manager's outlook.

Highest Dividend-Paying Flexi Cap Funds

The table below lists the top Flexi Cap Funds based on their trailing three-year annual dividend (distribution) yield.

Scheme Name AMC Launch Date Trailing 3-Year Annual Dividend Yield (per cent)

HDFC Flexi Cap IDCW HDFC Mutual Fund January 1, 1995 9.51

PGIM India Flexi Cap Regular IDCW PGIM India Mutual Fund February 25, 2015 9.16

HSBC Flexi Cap IDCW HSBC Mutual Fund February 24, 2004 9.06

DSP Flexi Cap Regular IDCW DSP Mutual Fund April 29, 1997 8.45

Mahindra Manulife Flexi Cap Fund Regular IDCW Mahindra Manulife Mutual Fund August 23, 2021 7.94

Source: Data as of July 21, 2026.

Distribution yield calculated for the period from July 21, 2023, to July 21, 2026.

Should You Invest Based Only on Dividend Yield?

A high historical dividend or distribution yield should not be the sole reason for selecting a mutual fund. Past performance can provide useful insights, but it does not guarantee future results. Market conditions, economic cycles, interest rates, corporate earnings and sector trends keep changing, which can influence a fund's future performance.

Instead of focusing only on historical distribution yield or returns, investors should consider whether the fund's investment approach aligns with the future outlook of different sectors and themes. A diversified portfolio with exposure to businesses that have strong long-term growth prospects may be better positioned to create wealth over time.

(“Disclaimer: This article uses information originally published by Dalal Street Investment Journal (DSIJ). The views expressed are those of the original authors and not necessarily of ABP Network Pvt. Ltd. This content is provided for general informational and educational purposes only and should not be construed as investment, financial, legal or tax advice. Readers are advised to conduct their own research and/or consult a qualified financial advisor before making any investment decisions. This content is for informational purposes only and should not be treated as investment advice. ABP Network, its employees and associates shall not be responsible or liable for any losses or damages arising directly or indirectly from the use of or reliance on this article or any information contained herein.”)