IDCW stands for Income Distribution Capital Withdrawal option, which is a dividend distribution plan for mutual funds.
How IDCW works
When you invest in an IDCW scheme, you receive dividends as partial payouts from the profits earned by the fund's underlying investments. After the fund distributes these dividends to you, the
Net Asset Value (NAV) of the fund decreases proportionally.
Important details about IDCW
- Dividend tracking: You can track your dividends on the respective Asset Management Company's (AMC) website.
- Reinvestment limitation: IDCW reinvestment schemes are currently not available on Coin.