Money word, in plain English ← Back to all terms
IDCW
A mutual fund option that pays some money out to you instead of letting it compound.
Example. On an IDCW payout of ₹2 per unit, the NAV drops by ₹2 that day.
IDCW stands for Income Distribution cum Capital Withdrawal, and it replaced the older label of dividend option, because the old name misled people. The payout comes out of your own NAV, which falls by exactly that amount on the record date. Nothing was added to your wealth. The alternative is the growth option, where gains stay inside the scheme and keep compounding, which usually suits a long-term goal better.
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