Growth option vs IDCW option in mutual funds

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

Every open-ended mutual fund scheme in India offers at least two investment options: the growth option and the IDCW (Income Distribution cum Capital Withdrawal) option. Each option maintains a separate NAV and represents a different mechanism for the investor to receive value from the scheme’s portfolio performance, though both options invest in an identical underlying portfolio managed by the same fund manager.

The choice between growth and IDCW is one of the most consequential structural decisions for a mutual fund investor, primarily because of its tax implications.

Mutual Fund Plan on WebNotes

Growth option vs IDCW option in mutual funds