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IDCW in Mutual Funds: Income Distribution cum Capital Withdrawal Explained (2025)

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In recent years, mutual fund investors have come across a term that has replaced the older “dividend” option — IDCW , which stands for Income Distribution cum Capital Withdrawal . If you're new to this concept or confused about how it works, you're not alone. This article provides a complete and SEO-optimized guide on IDCW in Mutual Funds , including its meaning , working , taxation , advantages , and differences from traditional dividend and growth options. What is IDCW in Mutual Funds? IDCW ( Income Distribution cum Capital Withdrawal ) is a payout option in mutual funds where the fund distributes part of its earnings to investors at intervals (monthly, quarterly, or annually). These payouts are not guaranteed and depend on the fund's distributable surplus . Earlier known as the Dividend Option , the term was changed by SEBI (Securities and Exchange Board of India) in 2021 to reflect the true nature of payouts , as sometimes part of the payout may include your inve...
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NPS vs SIP: Which is Better for Retirement & Wealth Building in 2025?

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  When planning for long-term financial goals like retirement , investors often come across two powerful options — the National Pension System (NPS) and Systematic Investment Plans (SIPs) in mutual funds. Both offer excellent potential for creating wealth and achieving financial independence, but they serve different purposes , come with different risks , and offer distinct advantages . This comprehensive guide compares NPS vs SIP in detail to help you decide which investment option suits your financial goals better in 2025. What is NPS (National Pension System)? The National Pension System is a government-backed pension scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA) . It is primarily designed to help individuals build a retirement corpus by investing in a mix of equities, corporate bonds, and government securities. Key Features of NPS: Contributions are invested in Equity (E), Corporate Bonds (C), and Government Securities (G) Lock-in till...
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