So I invested about INR 185,000 in Axis Midcap Fund a while back.
Until last night, my profit was about ~2%. (the profit was INR 3000-3500, can’t quite recall the exact amount) but the current value of my investment (investment + profit) was around INR 188,500
Cut to today and I can see that they paid out some sort of Dividend on 13th September.
I can see that the current value of my investment has gone up by about INR 1000 (maybe because the stocks comprising the portfolio rose so it is now INR 189,550) but the profit is now reported as 16.11% with the value of what I invested being reduced by almost INR 20,000 almost the same amount as my profit has risen.
Long story short it looks like the current value of the portfolio hasn’t changed but the profit has risen, which means it is taxable 
I’m confused because I had invested in Growth fund (not IDCW) hoping this sort of thing won’t happen. I’m confused and don’t understand what happened here, can someone please explain this to me ?
I don’t understand how this benefits investors.
