The power of disciplined long-term investing has once again grabbed investor attention after new data shared by Franklin Templeton Mutual Fund revealed remarkable returns generated by one of its oldest schemes.
The fund house recently celebrated the 20th anniversary of the Franklin Templeton scheme now known as the Franklin India Dividend Yield Fund.
According to the data released by the fund house, a monthly SIP of just ₹10,000 in this scheme over the past 20 years would have grown into a massive corpus of nearly ₹1.2 crore.
The performance comes despite multiple phases of stock market volatility witnessed over the last two decades.
What Is Franklin India Dividend Yield Fund?
The scheme, currently called the Franklin India Dividend Yield Fund, was earlier known as the Templeton India Equity Income Fund.
The mutual fund follows a dividend yield-focused investment strategy, meaning it primarily invests in companies that consistently pay strong dividends and maintain healthy dividend yields.
The fund has now crossed ₹2,300 crore in Assets Under Management (AUM), reflecting growing investor confidence in the strategy.
How Much Return Did Investors Earn?
The long-term returns delivered by the fund have become a major talking point among investors.
SIP Investment Example
If an investor had started a Systematic Investment Plan (SIP) of ₹10,000 per month 20 years ago:
Total investment amount: ₹24 lakh
Current estimated value: ₹1.2 crore
This highlights the immense power of compounding through disciplined long-term investing.
Lump Sum Investment Example
Similarly, if an investor had made a one-time investment of ₹1 lakh in the fund 20 years ago, the investment would reportedly have grown to approximately ₹13.6 lakh today.
Fund Outperformed Nifty 500 TRI
According to the data shared, the fund has generated an annualized compounded return (CAGR) of approximately 13.97% since inception.
In comparison, the benchmark Nifty 500 Total Return Index (TRI) delivered a CAGR return of around 12.39% during the same period.
The difference in performance becomes significant over long durations due to the impact of compounding.
As per the comparison:
₹1 lakh invested in the fund grew to ₹13.6 lakh
₹1 lakh invested in Nifty 500 TRI grew to approximately ₹10.3 lakh
This indicates the fund outperformed its benchmark index over the long term.
How Does This Mutual Fund Work?
Focus on High Dividend Yield Companies
The fund primarily selects stocks of companies that:
Have strong dividend payment histories
Offer high dividend yields
Maintain stable business operations
This strategy is generally considered suitable for investors seeking relatively stable equity investments with long-term wealth creation potential.
Aim of Downside Protection
According to Rajesh Kakulavarapu, the portfolio manager of the scheme, the key objective of the fund is to protect investor capital during market downturns while delivering long-term compounding benefits.
This approach aims to reduce volatility compared to aggressive growth-focused equity funds.
Where Does the Fund Invest?
The Franklin India Dividend Yield Fund maintains a diversified investment portfolio across multiple sectors and market-cap categories.
Major Sectors in Portfolio Include:
Banking & Financial Services
Power & Energy
Information Technology (IT)
FMCG
Automobiles
Telecom
Consumer Durables
Aerospace & Defense
The fund also spreads investments across:
Large-cap companies
Mid-cap companies
Small-cap companies
According to April 2026 portfolio data, nearly 54% of the fund’s assets were invested in large-cap stocks.
International Investments and REIT Exposure
The scheme also maintains some international exposure.
As per available data:
Around 8% of assets were invested in foreign markets such as the United States, South Korea, and Taiwan
More than 9% of assets were allocated to four listed Real Estate Investment Trusts (REITs)
This diversification strategy helps reduce concentration risk while offering exposure to global opportunities.
Why Long-Term SIP Investing Matters
Financial experts often highlight SIP investing as one of the most effective ways to build wealth over time.
Benefits of long-term SIP investing include:
Rupee cost averaging
Disciplined investing habit
Power of compounding
Reduced market timing risk
The latest performance data from Franklin India Dividend Yield Fund once again demonstrates how patience and consistency can create substantial wealth over the long term.
Investors Should Evaluate Risk Before Investing
Although the fund has delivered strong historical returns, experts advise investors to evaluate:
Risk appetite
Financial goals
Investment horizon
Market volatility
before investing in equity mutual funds.
Past performance does not guarantee future returns, and mutual fund investments remain subject to market risks.
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