mutualfunds

  Mutual fund investors often come across the term IDCW, which replaced the older term Dividend Option. IDCW stands for Income Distribution cum Capital Withdrawal, and understanding it is crucial for anyone investing in mutual funds for regular income or cash flow. This detailed guide will help you understand what IDCW means, how it works, tax implications, and whether it’s suitable for you. 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 the income and/or capital gains to investors at regular intervals. Earlier known as the Dividend Option, SEBI mandated a change in terminology in 2021 to reflect that such payouts may come not just from the profits but also by redeeming part of the investor’s own capital. How Does IDCW Work? In an IDCW plan: The mutual fund declares IDCW based on surplus cash (dividends received, interest, gains). The amount is paid to the investor on a regular b...

  When it c omes to building wealth and planning for retirement , two prominent investment options often stand out: Systematic Investment Plan (SIP) in mutual funds and the National Pension System (NPS) . While both options aim to help investors accumulate a significant corpus , they differ in their structure, risk profile, liquidity, tax benefits , and returns . In this comprehensive comparison of SIP vs NPS , we analyze all aspects in detail to help you choose the right option based on your goals. What is SIP (Systematic Investment Plan)? A Systematic Investment Plan (SIP) is a disciplined way to invest a fixed amount regularly in mutual funds. It allows investors to benefit from rupee cost averaging and compounding , making it a popular option for wealth creation over the long term. Key Features of SIP: Invest as low as ₹500 monthly. Flexibility to increase, decrease or stop SIP at any time. Choose from equity, debt, or hybrid mutual funds. High liquidity — redeem anytime (...