Growth option
In a Growth option, gains remain invested in the scheme. The NAV reflects the compounding of the underlying portfolio after expenses.
Growth vs IDCW
Growth and IDCW options can behave differently. Learn why this matters when comparing mutual fund returns.
IDCW option
IDCW stands for Income Distribution cum Capital Withdrawal. It may distribute income or capital, but distributions are not guaranteed. NAV can reduce after a distribution.
Why Growth is easier to compare
For beginners studying NAV-based returns, Growth options are usually cleaner because the NAV keeps the compounding journey in one place.
IDCW is not fixed income
IDCW payouts should not be treated as guaranteed interest. The amount and timing can vary and may come from distributable surplus or capital as rules allow.
Tax and suitability
Tax treatment and suitability can differ. Investors should verify details from scheme documents or a qualified adviser before choosing.
Educational disclaimer
This guide is for education only. It is not investment advice, tax advice, legal advice, or a recommendation to buy, sell, or hold any mutual fund. Mutual fund investments are subject to market risks. Historical returns do not guarantee future performance.