Recent Dividend Announcement of Mutual Fund
Mr. Singh invests in mutual funds and receives dividends from the same. It offers him a steady income as well as liquidity. Such dividends are paid annually, half-yearly, quarterly or monthly and are based on the surplus that a scheme generates.
Keep scrolling to get an insight into the recent mutual funds dividend announcements!
Here Are the Latest Mutual Fund Dividends
All mutual fund schemes, including equity and debt mutual funds, provide dividends. So, if you invest in mutual funds, you must check the dividends first. Following is a list of the latest dividends declared by mutual funds:
| Scheme Name | Dividend per Unit | Record Date | Scheme Type | Category |
| HDFC Balanced Advantage-IDCWM | 0.26 | 25 February 2022 | Open-ended | HY-DAA |
| Franklin India Smaller Companies Direct-IDCW | 3.00 | 25 February 2022 | Open-ended | EQ-SC |
| Franklin India Flexi Cap Direct-IDCW | 3.50 | 25 February 2022 | Open-ended | EQ-FLX |
| Canara Robeco Short Duration Direct-IDCWM | 0.06 | 25 February 2022 | Open-ended | DT-SD |
| DSP Midcap Reg-IDCW | 2.60 | 24 February 2022 | Open-ended | EQ-MC |
| DSP Midcap Direct-IDCW | 5.80 | 24 February 2022 | Open-ended | EQ-MC |
| DSP Global Allocation Reg-IDCW | 0.80 | 24 February 2022 | Open-ended | EQ-INTL |
| DSP Global Allocation Direct-IDCW | 0.85 | 24 February 2022 | Open-ended | EQ-INTL |
| DSP Equity Savings Reg-IDCW | 0.70 | 24 February 2022 | Open-ended | HY-EQ S |
| DSP Equity Savings Direct-IDCW | 0.75 | 24 February 2022 | Open-ended | HY-EQ S |
Importance of Checking Recent Mutual Fund Dividends
Mutual fund schemes declare dividends now and then. It is crucial for you to check the recent mutual funds dividend announcements so that a payout doesn’t remain unnoticed. Besides, you can miss the dividend chart and buy units in an ex-dividend scheme.
You must also remember the record date prior to buying mutual fund units. You won’t get your dividends if you miss the record date.
Frequency of Mutual Fund Dividend Declaration
The type of scheme determines the frequency of dividends. Dividends are more certain when you have opted for a debt mutual fund scheme with a regular dividend plan (say monthly). On the other hand, there are long-term implications for a growth plan.
Balanced mutual funds, debt mutual funds and equity mutual funds declare regular dividends, and you need to understand each of them before investing in one.
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Calculation of Returns from Recent Mutual Fund Dividends
It is somewhat difficult to compute the returns from dividends on mutual fund schemes. However, one must calculate the same to compare the returns from bank deposits and mutual fund dividends. Let’s understand how it can work!
Let’s say you have invested in a debt mutual fund with annual dividend distribution. You can compute whether the dividend amount you’ll receive after 1 year will be higher than the amount of interest from bank deposits. If the return is more, you’re better positioned with the scheme in comparison to your bank deposits.
Options for Receiving Mutual Fund Dividends
Besides tracking the recent mutual funds dividend announcements, you can also select the dividend option that you need. For instance, you may choose from options such as quarterly dividend, yearly dividend and monthly dividend. Individuals who want a regular income from mutual funds can go for the monthly dividend option.
Taxation of Mutual Fund Dividends
A fund house deducts 10% TDS on dividends paid over Rs. 5,000. If an investor fails to furnish PAN, TDS will be deducted on the dividend income at 20%. While filing an income tax return, investors can claim tax benefits for TDS deducted.
Final Word
Despite tax implications, a dividend option satisfies your liquidity needs and offers high payouts. Keep checking the mutual fund dividend announcements regularly. Neither should you miss any payout nor should you invest in any ex-dividend scheme. Be alert!
FAQs
Ans: Retired individuals and other income-seeking individuals can start investing in mutual funds with dividend options. An investor must keep in mind that a dividend option acts as an effective income source while a growth option assists in wealth creation.
Ans: An asset management company (AMC) or a fund house distributes dividends as per its regulations. A fund manager takes decisions related to disbursements. Most fund houses offer dividend payouts regularly. However, note that mutual fund dividends are not guaranteed.
Ans: When a mutual fund scheme goes ex-dividend, the following take place:
• A dividend gets paid out among the unitholders.
• The mutual fund’s NAV falls by the dividend amount per unit paid out.
• An investor, who has purchased the units before the ex-dividend date, gets to earn income.
• At the same time, there is a capital loss since the cum dividend NAV (at which an investment is made) will be higher than the ex-dividend NAV.
Ans: An issuing company keeps a specific date on which an investor should own shares for participating in corporate events such as getting bonus shares or dividends and participating in annual general meetings. This is known as a record date.
Ans: Yes, ELSS (Equity-Linked Savings Scheme) can be denoted as tax-saving mutual funds. Investments of up to Rs. 1.5 lakh in ELSS are eligible for tax deduction under Section 80C of the Income Tax Act, 1961.
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Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
