What is a Dividend Reinvestment Plan?
Dividend plans have an additional option for reinvestment of income distribution. Under this plan, dividends declared by a fund are reinvested on behalf of the investor, thus increasing the number of units held by the investors.
What are Dividend Plans?
Mutual funds dividend plans distribute the income that they earn from time to time.
When will the dividend be credited into my trading account?
The dividend declared will not be credited into your trading account. It’ll be directly credited into your registered bank account within 1 month from the Ex-Dividend date.
What are Growth Plans?
Growth plans aim to provide only capital appreciation to the investors. They do not distribute the income earned to the investors in the form of a dividend.
Am I eligible for corporate actions if I sell my holdings on the ex-date?
Yes, as a shareholder will be entitled to corporate actions if you sell the holding on the ex-date or the record date. For instance, REC Ltd. announced a dividend of ₹5 with a record date of 9th November 2022. Mr. X, a shareholder, sold his holdings ...
What is Additional lumpsum in Mutual Fund?
Lumpsum investment refers to the one-time investment in a particular scheme. In other words, investing all the amount in one go is called Lumpsum. Similarly, additional lumpsum means investing in any scheme that you have already made a lumpsum ...