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).
This article was originally published on October 15, 2010.
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