ICICI Prudential Dividend Yield Equity Fund Direct Plan IDCW Option

ICICI Prudential Dividend Yield Equity Fund Direct Plan IDCW Option holds up reasonably well within the Dividend Yield Fund category, backed by a 4-star rating. It has delivered steady, if unspectacular, returns over a full market cycle. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 78/100.

Cost: At 0.61%, the expense ratio is meaningfully cheaper — about 34% below the Dividend Yield Fund category average of 0.93% (based on 15 comparable funds). Lower costs compound in your favour over long holding periods.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a negative Sharpe ratio of -0.7 — over the past year, returns haven't kept pace with the volatility involved, even before accounting for the risk-free rate. Separately, annualised volatility of 14.71% is fairly typical for actively managed equity funds.

Who should invest: This fund is best suited to investors whose goals and risk appetite align with a Equity fund. The High risk rating means near-term volatility should be expected — this isn't a fund to check daily.