How do Dividend Plans in mutual funds function?
Dividend Plans in mutual funds periodically distribute the income or profits generated by the fund to its investors. Instead of reinvesting the earnings, these plans provide cash payouts to unit holders, allowing them to benefit from the scheme's performance.
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How do growth plans in mutual funds work?
Growth plans in mutual funds primarily focus on capital appreciation. Unlike dividend plans, they do not distribute the earned income or profits as dividends to investors. Instead, the income is reinvested, leading to an increase in the Net Asset ...
What are dividend reinvestment plan entail in mutual funds?
A Dividend Reinvestment Plan in mutual funds provides investors with an alternative to receiving dividends in cash. Instead of getting a cash payout, the dividends are reinvested to purchase more units of the fund. This can lead to compounded growth ...
What are closed-ended funds/schemes in mutual funds?
Closed-Ended Funds or Schemes are specific types of mutual fund schemes that are available for subscription only during a designated timeframe, often referred to as the New Fund Offer (NFO) period. They come with a predetermined maturity date, ...
What charges apply for investing in mutual funds through FYERS?
There are no charges for buying mutual funds on Fyers Direct — purchasing is completely free. However, when you redeem (sell) your mutual fund units, a standard DP charge of ₹12.5 + 18% GST per ISIN applies, as per the demat debit structure. This is ...
Are there inherent risks when investing in mutual funds?
Yes, like all investment vehicles, mutual funds carry risks. They invest in a variety of financial securities such as equities, bonds, and money market instruments. The performance of these securities can be volatile, leading to fluctuations in the ...