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Dividends Received by Funds

A mutual fund doesn't disclose the total dividends it receives from the stocks it has invested into

In an equity mutual fund, is there a way to know how dividends from stocks are used? What I understand is that the NAV will be adjusted with the dividend amount, but is there a way to know how much dividend a fund received?
- Kamesh Rao

There is no such disclosure of total dividends that a mutual fund receives from the stocks it invests into. Dividend yield funds mainly invest their corpus into dividend paying stocks which is clearly mentioned in the investment objective of the scheme. Mutual funds release portfolio of all their schemes on a monthly basis stating the percentage of NAV each stock and other debt investments hold. Mutual funds are professionally managed investment tools. There are also stringent regulations about the calculation of NAV, valuation of portfolios and accounting of the receipts. Therefore you need not worry about the dividends not being accounted for. So, if a fund receives dividends from its portfolio companies you can be assured that it will increase the returns to the investor in form of increased NAV.

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