When a Mutual fund scheme declares dividend, on which day will the NAV get adjusted for the dividend amount? For example; the record date for the last dividend declared under Birla Sun Life Tax Relief 96 was 27th June. The fund declared a dividend of 50 per cent on face value of Rs 10. But I could not figure out that on which day the NAV got adjusted for the dividend amount?
Generally the NAV of a fund is adjusted for the dividend on the record date. In case of Birla Sun Life Tax Relief '96 also, the adjustment for dividend was made on the record date. Following is the detail of recent dividend from Birla Tax Relief '96:
The slip in the NAV was more than Rs 5 on June 27 because of the market fall which lead to further 3.95 per cent fall in the NAV, while the Sensex fell by 4.3 per cent on same date.