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Last Updated : Dec 03, 2019 03:50 PM IST | Source: Moneycontrol.com

Recent dividends of mutual munds (MF) in India

Recent Dividends in MF: Check out the latest or recent dividends declared by various mutual funds in India. Read more on recent MD Dividends at Moneycontrol.

Representative image
Representative image

Mutual funds offer two types of yields. One is growth-oriented and the other is dividend-oriented. In the case of a growth-oriented mutual fund, the mutual fund invests in the stocks of an emerging company. The objective is to attain maximum capital appreciation. Investments are usually done in companies that have a proven track record of great revenue or companies which show potential.

In contrast, in the case of dividend yield fund is, the fund house invests in stocks of companies that pay a high dividend. In order to pay a high dividend, the company should have substantial profits. Therefore, investments are made in stocks of companies that have a proven track record of declaring profits.

The recent dividend of mutual funds is available on the websites of the mutual fund houses. You can also obtain the recent dividends using any of the aggregator websites for mutual fund investment.

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Let us look at the recent dividends of mutual funds.

 

Table on Recent Dividend of Mutual Fund


MF


FAQs 


What are the benefits of investing in a dividend mutual fund?


Here are the advantages of investing in such a mutual fund:

  • A stream of high dividends indicates that the company is performing very well

  • Dividends are tax-free at the hands of the investor


What are the disadvantages of investing in a dividend mutual fund?



  • A dividend distribution tax has to be paid by the company at the time of declaring dividends. However, the dividend is tax-free in the investor’s hands.

  • Dividends are not guaranteed as it depends on the profits made by the company.

  • These funds do not perform as much as the growth funds in a bullish market trend


I have invested in a dividend mutual fund. As a unitholder, how much time will it take to receive dividends/repurchase proceeds?


A mutual fund is required to dispatch to the unitholders the dividend warrants within 30 days of the declaration of the dividend. In case of failure to dispatch the dividends within the stipulated time period, the fund house is liable to pay interest as specified by SEBI from time to time for the period of delay. The delayed interest is 15% at present.

What is the difference between dividend yield and dividend option funds?


In a dividend yield fund, the returns that you receive are the dividends declared by the underlying company.  If the investor chooses this option, dividends are usually sent directly by the fund manager to the investor.

On the other hand the dividend-reinvestment mutual fund gives an investor the choice of reinvesting the dividends received. The dividend can be used by the fund manager to buy more shares. Reinvesting the dividend increases the number of shares owned and results in higher returns as compared to the dividend-yield option.

What is the dividend distribution tax?

Dividends represent distribution of profits among the shareholders and are treated as the income of the shareholders. The tax on the dividends is called the Dividend Distribution Tax (DDT). Usually, the income tax is paid by the receiver of the income. However, DDT is paid by the company which is declaring the dividend. Therefore, dividend remains tax-free at the hands of the dividend holder.

However, the dividend income which is in excess to Rs. 10 lakh in a year is chargeable at the hands of individuals, HUF, partnership firms or private trust. The present rate is 10%.
Not sure which mutual funds to buy? Download moneycontrol transact app to get personalised investment recommendations.
First Published on Dec 3, 2019 03:50 pm
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