If i invest in Mf with dividend payout and withdraw some/full amount after few months , shall I be paid dividend and on which part (only invested part or prorated).
When it is ideal to exit fund (dividend option)?
If you have redeemed the units partially before the record date, then you would receive the dividends as per the residual units in your account. If you have redeemed the units after the record date then you would receive the dividends as per the actual number of units that were allotted to you during the time of purchase.
There is no ideal time as such, it depends on your convenience. Also, investing in the growth option is a better option than investing in a dividend as explained in this post.
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Dividend options aren’t a good investment - learn why via this article on Everything you need to know about MF Dividends& Dividend Plans. It has relevant & recent info from May 2019, and broad topics/points are:
- Basics of Mutual Fund Dividends
- Dividend Plans do not equate to Dividend Strategies
- Dividend Impact on NAV
- Difference with Stock Dividends
- Double Taxation
Hope this helps, shout out if you have feedback or more questions! Happy investing! 
@faisr
If I will invest in the Mutual fund GROWTH option plan, Then how can I know in which month, we got the dividend for the particular scheme?
1)What is the dividend amount and how much dividend do we get?
2)If the UNITS get allocated in that month. So how can I know about the extra Units which were included in my total units, Is there any record in COIN?
3)How many units get allocated and in which month.
4)Can I see this information anywhere in the statement for more clarity on the coin platform.
Growth and dividend options are different. There will not be dividend if you choose growth option.
I think dividend per unit will be declared when the mutual fund wants to distribute, you will be notified I think.
There are no additional units here, only dividend amount.
And there will be tax on this dividend, I am not sure if you have to pay the tax or the mutual fund will pay on behalf of you and give you the remaining amount.
The better choice is investing in growth options. Also, there is no specific time to exit, it depends on your goal. Take the call accordingly after analysing the market.
Mutual fund dividend option, still means that you are essentially receiving your own money back, and you are also paying tax on that. This is a disadvantage for you. It is better to opt for growth based option and withdraw the amount whenever required.