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Are Mutual Fund dividends added to fund NAVs?

Know how dividend affects your fund's net asset value

What happens to the dividend mutual funds receive from companies in which they have invested in? Is it added to fund NAV?
- Nitin Bindal

Yes. If the stocks in a portfolio are the beneficiaries of bonus shares or dividends, it is ploughed back into the portfolio and hence, ultimately, reflected in the fund's Net Asset Value (NAV).



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