Dividend reinvestment option in mutual funds (historical)

Tue, 12 May 2026 00:00:00 +0000

The dividend reinvestment option was a sub-option within the dividend plan of Indian mutual fund schemes under which the dividend declared by a scheme on the record date was not paid out in cash to the investor but was instead reinvested in the same scheme by purchasing additional units at the ex-dividend NAV. This option existed from the early years of the Indian mutual fund industry through to 1 April 2021, when SEBI mandated renaming the “dividend” option to “IDCW (Income Distribution cum Capital Withdrawal) ” and the dividend reinvestment sub-option to “IDCW Reinvestment.”

How to claim mutual fund dividends on Coin

Tue, 12 May 2026 00:00:00 +0000

Mutual fund investors on Zerodha Coin who choose the IDCW plan (Income Distribution cum Capital Withdrawal – formerly called the Dividend plan) receive periodic cash payouts from the fund’s distributable surplus. These payouts are automatically credited to the investor’s registered bank account; no manual claim process is required.

This guide explains what IDCW means, how it works for demat-held Coin units, and how to ensure you receive and report payouts correctly.

Dividend Reinvestment on WebNotes

Dividend reinvestment option in mutual funds (historical)

How to claim mutual fund dividends on Coin