DSP Mutual Fund Declares Dividend Across Three Equity Funds

DSP Mutual Fund has announced an income distribution under the Income Distribution cum Capital Withdrawal (IDCW) option for three of its equity schemes. The dividend payout record date is February 13, 2025, meaning investors must hold units in these schemes before this date to be eligible for the dividend.

Which Schemes Are Offering Dividends?

The dividend distribution per unit varies across different schemes and categories. Here’s a breakdown of the payouts:

DSP ELSS Tax Saver Fund

• Direct-IDCW: ₹0.6 per unit
• Regular-IDCW: ₹0.6 per unit

DSP Small Cap Fund

• Direct-IDCW: ₹5.2 per unit
• Regular-IDCW: ₹4.7 per unit

DSP World Mining Fund of Fund

• Direct-IDCW: ₹0.9 per unit
• Regular-IDCW: ₹0.8 per unit

What is IDCW?

IDCW, or Income Distribution cum Capital Withdrawal, is a payout option where mutual fund investors receive periodic distributions from the fund’s profits. However, unlike traditional dividends in stocks, IDCW is not an additional profit, it is paid from the scheme’s own assets. This means that once the dividend is distributed, the fund’s Net Asset Value (NAV) decreases by the same amount.

Investor Considerations

Investors choosing the IDCW option receive regular cash payouts, making it suitable for those seeking periodic income. 

For investors already holding these schemes, the record date determines eligibility for the upcoming payout.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.