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| Name of the scheme | 1-year back | Invest now | Fund category | expense ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest now | Equity: Big Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest now | Equity: Big Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest now | Equity: Big Cap | 0.25% |
| Axis Nifty 500 Index Fund | , | Invest now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest now | Equity: Mid Cap | 0.28% |
This method of investment allows shareholders to benefit from compounding, as dividends buy more shares, making their dividends. Over time, this can lead to a major increase in the price of investment. In particular, the dividend paid in the drip is taxed, even if they are used to buy shares.
How does the drip work?
This regeneration scheme works using dividends from investment to buy more of underlying investment. Let us understand this process in detail:
First phase: For example, let’s invest ‘X’ 30,000 in a mutual fund where the navy was 10 per unit. Then, the number of units allotted to X is 3000.
Stage 2: For the financial year, the company announced dividends 1.5 per unit and presses NAV at the end of the year 15.
Stage 3: The total investment of x increases
45,000 (15 * 3000 units).
Stage 4: Reduces NAV On 1.5 13.5 per unit, and then new dividend will be 4,500 (1.5 × 3,000).
Stage 5: The number of units for dividend regeneration is new Nav as 333.33 units 13.5 (4,500 / 13.5). The new number of units is 3333.33 (3000 + 333.33).
Stage 6: Investment will have total value 44,999.9 (Number of units x post- Dividendend Nav: 3333.33 x 13.5).
Is Dividend Revival Scheme a good idea?
Drips provide various benefits to investors, especially to build funds for investors for a long time. This allows investors to gradually increase its holding in a firm, which occurs in a firm over time without investing further cash.
This scheme is useful for investors who want dollars-dollar average or do not have enough money to make new investment.
This can help investors take advantage of compounding, as the dividend earned on additional shares can be re -established, resulting in more shares and dividends.
(edited by : Sudarshan Mani,
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