Hi,
Would like to know how the dividend proceeds on these type of funds usually credited. Take for example CPSE ETF is comprising of navratnas shares.If each company pays some dividend , how i will get benefited as i have the fund based on these navratnas? whether a consolidated dividend will be given to us or how?
It is not necessary for a mutual fund scheme to declare dividends if the companies ( whose stocks are the underlying composition of the portfolio ) announce dividends.
Its the fund manager’s or AMC’s decision to declare dividends for the particular scheme.
ETF is a mutual fund scheme which is listed on the exchange. Generally, most of the ETFs have the growth option but some schemes which have the dividend option would either pay the dividends or reinvest it. For example , for Liquid bees the dividends are reinvested so you receive extra units but for Junior Bees and Nifty Bees, the dividends are paid out to your bank account.
For CPSE ETF, the AMC has not declared any dividends till now. But, if they do so in the future then the amount will be credited to your bank account as mentioned in the scheme information document.
Hi,
Is there any way to track how much dividend is added to NAV? Does AMC announce the same?