What is IDCW in Mutual Funds? Recently I have been answering the query regarding new abbreviation in Mutual fund i.e., IDCW ‘IDCW’ is abbreviation of ‘Income Distribution cum Capital Withdrawal’. Mutual fund investors have come across this new term IDCW when SEBI changed the term “Dividend Option” in mutual funds to “IDCW” in April 2021. If you had invested in any mutual fund scheme under dividend Option, you will now notice IDCW next to the mutual fund scheme name in your statement of account (SOA) sent by the AMC. This is only a change in terminology and as such there is no impact on investors. Why SEBI changed Dividend to IDCW? Income Distribution cum Capital Withdrawal or IDCW refers to distribution of income of a mutual fund scheme, which may include both dividends paid by stocks and capital gains made by selling underlying stocks from the scheme portfolio. However, SEBI also wanted to emphasize that this income is coming out of the investor’s investment val...
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