Mutual Fund: Record Date..

Record date is the date on which the list of mutual fund (MF) unit holders who are eligible to receive dividends is populated. The unit holders, whose names figure in the books on the record date, will be considered for dividend distribution.

Dividend is declared on the face value and not on the NAV (Net Asset Value). For instance, ABC equity scheme declared a dividend Rs. 2 per unit on Face value of Rs. 10 which will be distributed to the unit holders.

If an investor buys units of ABC equity scheme on the record date itself (before the stipulated or cut-off time), dividend will be distributed equivalent to the units held in his folio.

Asset Management Company (AMC) declare the quantum of dividend just few days before the record date. The announcement of dividend is published in a minimum 2 newspapers.

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