Dividend yield funds gave 27% returns. Invest now?

Success has many fathers, but failure is an orphan. Like everything else in life, this line rings true in investing. Consider the dividend yield category of mutual funds. Its success in recent months has made it a trendy option for investors. The best example of this is when SBI Mutual Fund launched a dividend yield fund earlier this year and raised Rs 3,500 crore from the public in no time. Since they are attracting such high traction, we thought of giving you an overview of these funds. What are they? This type of mutual fund invests at least 65 per cent of the money in companies that announce high dividends. (Generally, cash-rich IT companies and public sector undertakings (PSUs) declare high dividends). Their short-term performance In the last 12 months, these funds have given solid returns, delivering a little over 27 per cent. To understand the reason/s, we reached out to Aditya Birla Sun Life - the best-performing fund house that has given a whopping 36.57 per cent returns in the last 12 months. Their chief investment officer (CIO), Mahesh Patil, said: They t