what is the difference between uti nifty 50 index fund (direct plan) and uti nifty 50 index (idcw)
@Arun_Kumar_AK27 IDCW is the erstwhile dividend option , wherein a certain portion of your growth is paid out to you as an ‘income’.
Under the Growth scheme, the dividends are reinvested back .
IDCW - Income Distribution cum Capital Withdrawal
In the growth option, if the scheme manages to make any profits, these gains are invested back into the scheme. Over time, this may result in the growth in the NAV of the scheme. On the other hand, the IDCW option (Income Distribution cum Capital Withdrawal) withholds you from reinvesting your gains or profits made by the fund. Investors have a payout option where these gains or profits made by the scheme are distributed in the form of “dividends” to the investor from time to time.
Also, adding to that mutual funds don’t actually offer dividends, they are misnamed.The AMC is booking profits/selling units and returning your money. They’re also highly tax-inefficient. It’s better to invest in growth plans. Check out this post: Here's why dividend mutual funds are a bad deal for you