Best mutual funds, Aug. 29 -- Before you decide to invest in a mutual fund, it is advisable to compute its past returns and compare them with those of other funds in the same category.

Although past returns of a mutual fund scheme do not guarantee future returns, they set the tone of future expectations from it.

Here, we explore the high-performing dividend yield mutual funds and select only those which delivered more than 20 per cent annualised return in the past five years. This means if someone had invested only Rs.1 lakh in a scheme five years ago, the investment would have grown to Rs.2,48,832 by rising at a CAGR (compound annual growth rate) of 20 per cent a year.

Dividend yield mutual funds refer to those funds which predominant...