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What's in a name: Why there is no sense in picking 'dividend' option in an equity mutual fund

What was called dividend was always exactly what the new name says: Income Distribution cum Capital Withdrawal. However, it’s quite clear that a lot of investors are still having some problems understanding what this whole business is all about and believe (are being misled) into thinking that the payout is actually a dividend and only the name has been changed. ....

Income Distribution , Capital Withdrawal , Mutual Fund Schemes , Income Distribution Cum Capital Withdrawal , வருமானம் விநியோகம் , பரஸ்பர நிதி திட்டங்கள் ,

Why there is no sense in picking 'dividend' option in an equity mutual fund


Why there is no sense in picking dividend option in an equity mutual fund
Dividends/IDCW have no impact on the return you are getting from your investment.
Synopsis
It’s accurate because, in any real sense of the word, there were never any dividends paid in mutual funds. It was always an illusion.
At the beginning of this financial year, Sebi changed one of the oldest pieces of nomenclature in Indian mutual funds there is no such thing as dividend any more. What used to be called dividend is now simply called distribution and what used to be called dividend plans of mutual fund schemes are now called ‘Income Distribution cum Capital Withdrawal’ plans. That’s a mouthful so these will be called IDCW, which is also a mouthful but nothing can ....

Income Distribution , Capital Withdrawal , Mutual Fund Schemes , Income Distribution Cum Capital Withdrawal , வருமானம் விநியோகம் , பரஸ்பர நிதி திட்டங்கள் ,