What does an AMC do with the dividend it receives from companies? Do investors benefit in any way from that?
Yes, investors do benefit. The money that you invest in a mutual fund earns returns from three sources: capital gains, dividends and interest. All of these are reflected in the NAV on a day-to-day basis. So, the dividend which a mutual fund earns on the portfolio they have built with your money, gets back in the portfolio and is reflected in the NAV.