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.”

IDCW Reinvestment on WebNotes

Dividend reinvestment option in mutual funds (historical)