Mutual Fund Dividend is one of the most popular mis-selling points. At the same time, Mutual Fund Dividend is USP for fund houses. It is one of the key reason for the popularity of a scheme. In many cases, the popularity of the mutual fund scheme is directly proportional to the frequency, and quantum of Mutual Fund Dividend declared. The investment advisers are not kind enough to explain the novice investor that Mutual Fund Dividend is being paid from the investment only. Mutual Fund Dividend is entirely different from Stock Dividend. Financially, the dividend declared on a stock is truly your ... Read More
Dividend in Non Equity Funds – A Wealth Killer
Dividend Payout is one of the most popular option and USP for Mutual Funds. It may be good for equity mutual funds but for non-equity mutual funds, its a wealth killer. Infact Dividend option is "Silent" Wealth Killer as it kills your wealth without your knowledge. As i explained in my post Capital Gain Tax - Short Term Capital Gain that a mutual fund is classified as Equity Mutual Fund only if 65% of its AUM is invested in equity market. Any fund which does not fulfill this condition is non-equity mutual fund. Non-Equity Mutual Funds broadly include Debt Funds, Monthly Income Plan, Balanced ... Read More