Understanding IDCW in Mutual Funds
When you delve into the world of mutual funds, you encounter a variety of terms and acronyms that might seem perplexing at first. One such term that often raises questions is ?IDCW? or Income Distribution Cum Capital Withdrawal. In this comprehensive guide, we will demystify IDCW in mutual funds, helping you grasp its significance, functioning, and its impact on your investments. What is IDCW in Mutual Funds? IDCW, or Income Distribution Cum Capital Withdrawal, is a crucial aspect of mutual fund investments, particularly in debt funds. It refers to the process through which a mutual fund scheme distributes its income generated from investments to unitholders while also allowing them to withdraw a part of their invested capital.
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