IDCW vs Growth

IDCW vs Growth

Blog Article

When investing in mutual funds, understanding the difference between IDCW (Income Distribution cum Capital Withdrawal) and Growth options is critical.

IDCW Option

Under the IDCW option, investors receive periodic payouts from the profits generated by the fund. These payouts are not guaranteed and depend on the fund’s performance.

• Who Should Choose IDCW?: Ideal for investors seeking regular income, such as retirees.


• Tax Implications: Dividends are taxable in the hands of investors as per their income slab.

Growth Option

In the Growth option, profits are reinvested back into the fund, leading to compound growth over time.

• Who Should Choose Growth?: Suitable for long-term wealth creation.


• Tax Implications: Gains are taxed only upon redemption, offering tax efficiency.

IDCW vs Growth depends on your financial goals and tax considerations.

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