Different types of mutual funds include equity funds which invest majority of funds into equity, debt funds that invest in debt papers, balanced mutual funds which are a combination of equity and debt funds, growth schemes where gains are reinvested, dividend funds that distribute part of gains to investors form time to time, SIP funds where you can invest regularly and many others.
How do you decide which fund or scheme to invest in? Determine your goals first like whether you want a stable income or high returns, short term investment or long term capital gains etc.
Based on your long term plans you need to decide your investment portfolio.
You may also seek professional guidance in case you get confused about which scheme might suit you best.
Investing your hard earned savings is a serious matter and you should consider everything carefully before choosing a proper vehicle to invest in.
The schemes that yield dividends are great options if you are looking for ways to reduce taxes.
Dividend income that is generated by equity mutual funds happens to be completely tax free.
Long tern capital gains on any asset held for less than a year is also tax free.
Moreover there is no dividend distribution tax or fee.
One concern for investors is that distribution of dividend also decreases the size of fund amount and leads to drop in Net Asset Value.
But remember that dividend declarations also attract many new investors to the pool.
If you are convinced about investing in dividend yield MF then check up on dividend history of the funds online.
Dividend history tracks dividend payments made by particular funds over a period of time making it easier to locate schemes which have generated ever-increasing dividends in the past.
This is good way to predict future performance of MF dividends.
Here are some dividend funds from Tata Mutual Fund that you may decide to invest in.

• Tata Pure Equity
• Tata Infrastructure Fund
• Tata Dividend Yield Fund