Mutual
fund (MF) investors always have the option to choose between Growth and
Dividend Options (plans). The choice boils down to whether or / not you want intermittent cash flows from
your investments or / whether you want the cash to accumulate.
The
dividend option of any mutual fund will provide for these intermittent cash
flows. While dividends can be a potential source of regular inflow, one must
remember that it is not mandatory for the Asset Management Company (AMC) to
declare dividends.
The
dividend option is available in all types of schemes. The quantum of dividend
differs across different schemes. The frequency of dividend distribution may
remain fixed, i.e., daily, weekly, monthly or / it could be adhoc.
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