Australian equity mutual funds provide diversification for traditional investment portfolios. Investors who wish to diversify their portfolios while achieving high dividend yields should consider AMP Capital Equity Income Generator Fund (40660.AX), T. Rowe Price Australian Equity Fund (19448.AX) and Aberdeen Australian Equity Fund (5685) .AX) ). As of October 27, 2020, all information provided here is accurate.
1. AMP Capital Equity Income Generator Fund
AMP Capital issued the AMP Capital Equity Income Generator Fund in 2013.The fund aims to provide dividend income higher than its benchmark S&P/ASX 200 cumulative index. Dividend income includes dividend credits or credits for returning the tax paid by the company to the company’s profits to shareholders. The fund aims to provide a long-term average annual rate of return of 5.0% and an annual management fee of 0.72%.
AMP Capital Equity Income Generator Fund focuses on the high dividend payment industry. About half of its main holdings are in the financial services industry, and other fund-allocated industries include real estate, communications services, and consumer cycles. The minimum investment of the fund is 10,000 US dollars.
2. T. Rowe Price Australian Equity Fund
The T. Rowe Price Australian Equity Fund aims to provide long-term capital appreciation by holding a diversified portfolio of Australian equity investments. The fund has outperformed its benchmark S&P/ASX 200 index, with an average annual return of 8.48% since its establishment in 2012.
If investors choose to invest directly with T. Rowe Price, there is no minimum investment requirement. However, if the investor does not invest directly with T. Rowe Price, the minimum initial investment requirement is AUD 500,000, or USD 356,320, which is extremely high for ordinary investors. The fund charges an annual management fee of 0.60%.
The T. Rowe Price Australian Equity Fund has total net assets of 73.9 million Australian dollars, or 52.6 million US dollars, and holds 33 shares.Approximately one-third of the fund’s main holdings are in the financial sector. Other fund allocations include real estate, consumer discretionary goods and materials.
3. Aberdeen Australian Equity Fund
Although the yield of Aberdeen Australian Equity Fund is not as high as that of T. Rowe Price Australian Equity Fund and AMP Capital Australian Equity Income Fund, the yield as of October 27, 2020 is 3.96%, and it has been realized since its establishment. The average annual rate of return is 7.1%.
Aberdeen Asset Management issued the Aberdeen Australian Equity Fund in 1985. The fund seeks to outperform its benchmark S&P/ASX 200 Accumulation during a three-year rolling period. To achieve its investment goals, the fund invests 88.5% of its assets in stocks listed on the Australian Securities Exchange (ASX), which have higher profit potential and capital appreciation potential.
The total net assets of the fund are 119.9 million Australian dollars, or 85.6 million U.S. dollars.Approximately one-third of the fund’s main holdings are in the financial sector, and other sectors allocated by the fund include healthcare, materials, energy, and industry.