Growth vs IDCW mutual fund: Which option suits you best?

You have two options if you are looking to invest in a mutual fund. Option 1: You want a portion of your mutual fund gains to be handed over to you from time to time In this case, you should opt for Income Distribution cum Capital Withdrawal (IDCW) plans. However, they aren't very popular due to the following reasons: The quantum of payout and timing is as per the choice of the AMC (the fund house). After the payout, the fund's NAV drops by the amount distributed. Hence, you should note that these distributions are not over and above the gains made by the fund. The amount paid out is subject to income tax because financially, it's similar to withdrawing money fr

This article was originally published on May 17, 2022, and last updated on October 18, 2022.