What’s in a name: Why there is no sense in picking ‘dividend’ option in an equity mutual fund

At the beginning of this financial year, Sebi changed one of the oldest pieces of nomenclature in Indian mutual funds—there is no such thing as dividend any more. What used to be called dividend is now simply called distribution and what used to be called dividend plans of mutual fund schemes are now called ‘Income Distribution cum Capital Withdrawal’ plans. That’s a mouthful so these will be called IDCW, which is also a mouthful but nothing can