{"id":11536,"date":"2025-06-04T00:13:09","date_gmt":"2025-06-03T18:43:09","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=11536"},"modified":"2025-06-04T00:13:13","modified_gmt":"2025-06-03T18:43:13","slug":"idcw-vs-growth","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/idcw-vs-growth\/","title":{"rendered":"IDCW vs Growth \u2013 Which Is Better?"},"content":{"rendered":"\n<p>It is well-known that different types of <a href=\"https:\/\/www.tickertape.in\/blog\/mutual-funds\/\">mutual funds<\/a> are available in the market. These mutual funds differ based on their functionality, duration and more. But did you know mutual funds also differ with respect to how the returns are distributed? There are two alternatives in mutual funds returns disbursement &#8211; growth and IDCW (Income Distribution cum Capital Withdrawal). In this article, let\u2019s learn about IDCW, growth plan, IDCW vs growth and which is better.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/idcw-vs-growth\/#What-is-IDCW-in-Mutual-Funds\" title=\"What is IDCW in Mutual Funds?&nbsp;\">What is IDCW in Mutual Funds?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/idcw-vs-growth\/#What-is-Growth-in-Mutual-Funds\" title=\"What is Growth in Mutual Funds?\">What is Growth in Mutual Funds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/idcw-vs-growth\/#IDCW-vs-Growth-in-Mutual-Funds\" title=\"IDCW vs Growth in Mutual Funds&nbsp;\">IDCW vs Growth in Mutual Funds&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/idcw-vs-growth\/#Growth-vs-IDCW-%E2%80%93-Which-is-Better\" title=\"Growth vs IDCW &#8211; Which is Better?\">Growth vs IDCW &#8211; Which is Better?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/idcw-vs-growth\/#What-Should-Investors-Consider-While-Switching-from-IDCW-to-a-Growth-Plan\" title=\"What Should Investors Consider While Switching from IDCW to a Growth Plan?&nbsp;\">What Should Investors Consider While Switching from IDCW to a Growth Plan?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/idcw-vs-growth\/#How-to-Get-the-List-of-IDCW-Funds-in-India\" title=\"How to Get the List of IDCW Funds in India?\">How to Get the List of IDCW Funds in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/idcw-vs-growth\/#Conclusion\" title=\"Conclusion&nbsp;\">Conclusion&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/idcw-vs-growth\/#Frequently-Asked-Questions-About-IDCW-vs-Growth\" title=\"Frequently Asked Questions About IDCW vs Growth\">Frequently Asked Questions About IDCW vs Growth<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/idcw-vs-growth\/#1-How-to-get-the-list-of-growth-funds-in-India\" title=\"1. How to get the list of growth funds in India?\">1. How to get the list of growth funds in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/idcw-vs-growth\/#2-How-to-get-the-list-of-top-IDCW-mutual-funds-in-India\" title=\"2. How to get the list of top IDCW mutual funds in India?\">2. How to get the list of top IDCW mutual funds in India?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What-is-IDCW-in-Mutual-Funds\"><\/span>What is IDCW in Mutual Funds?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In IDCW, previously known as the <a href=\"https:\/\/www.tickertape.in\/blog\/cash-dividend-vs-stock-dividend\/\">dividend<\/a> option, the profits earned are paid to the investors at pre-decided intervals. The intervals at which these dividends are paid depend on the fund. It can be annually, monthly, quarterly, or daily. The dividend rate is not fixed; it differs with each payout cycle. As per <a href=\"https:\/\/www.tickertape.in\/blog\/securities-and-exchange-board-of-india-functions-powers-and-regulations-of-sebi\/\">SEBI<\/a>, it is mandatory to pay dividends only from the profit earned by the mutual fund.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What-is-Growth-in-Mutual-Funds\"><\/span>What is Growth in Mutual Funds?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In growth funds or mutual fund growth options, profits earned on the mutual fund are reinvested in the scheme. It provides the investor with a chance to earn profits on profits.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"IDCW-vs-Growth-in-Mutual-Funds\"><\/span>IDCW vs Growth in Mutual Funds&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here\u2019s a detailed difference between IDCW and growth in mutual funds.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Features<\/strong><\/td><td><strong>IDCW<\/strong><\/td><td><strong>Growth<\/strong><\/td><\/tr><tr><td><strong>Profits<\/strong><\/td><td>Paid out to the investors.<\/td><td>Reinvested in the scheme.&nbsp;&nbsp;<\/td><\/tr><tr><td><strong>NAV<\/strong><\/td><td>Dividends are paid from the NAV. Hence the NAV is low compared to the growth plan.<\/td><td>The reinvested profit can increase in value over time. Hence the NAV is high compared to the IDCW plan.&nbsp;&nbsp;<\/td><\/tr><tr><td><strong>Taxation<\/strong><\/td><td>Dividend income is taxed as per the investor\u2019s <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-income-tax\/\">income tax<\/a> slab. If the investor doesn\u2019t have any other income source, a <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-tds-and-how-to-file-it\/\">TDS<\/a> of 10% is deducted from the dividend income (if the dividend is more than Rs. 5,000).&nbsp;<\/td><td>Short-term or long-term capital gains are applicable as per the investment tenure.&nbsp;<\/td><\/tr><tr><td><strong>Total returns<\/strong><\/td><td>Due to the periodic dividend payouts, the returns are low compared to the growth option.&nbsp;<\/td><td>As the plan focuses on long-term wealth creation, the returns are high as compared to the IDCW plan.&nbsp;<\/td><\/tr><tr><td><strong>Suitable for<\/strong><\/td><td>Investors looking for an investment option that pays profits at regular intervals.<\/td><td>Investors looking for long-term wealth creation options.&nbsp;<\/td><\/tr><tr><td><strong>Example<\/strong><\/td><td>Assume a fund has a NAV of Rs. 20 on 1st April 2020, and the investment amount is Rs. 10,000 for the number of units 500.<br>The NAV on 31st March 2021 is Rs. 25, and a dividend of Rs. 5 is declared. The investor will receive a dividend of Rs. 2,500. Post dividend, the NAV will be Rs. 20. Units issued against the dividend will be Rs. 125 (2,500\/20).&nbsp;The total number of units held will be 375 with a NAV of Rs. 20. And the total value of an investment will be Rs. 7,500.&nbsp;&nbsp;<\/td><td>Assume a fund has a NAV of Rs. 20 on 1st April 2020, and the investment amount is Rs. 10,000 for the number of units 500.<br>The NAV on 31st March 2021 is Rs. 25, and as there is no dividend paid out, the total value of the investment will be Rs. 12,500.&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Growth-vs-IDCW-%E2%80%93-Which-is-Better\"><\/span>Growth vs IDCW &#8211; Which is Better?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The only difference between growth and IDCW plans in mutual funds is how the returns are distributed. The growth plan is suitable for investors looking for long-term wealth plans, and it also provides the advantage of compounding as the profits earned are reinvested into the scheme. While on the other hand, IDCW is for investors looking for regular payouts from their investments. However, the best one between growth or IDCW plan depends on the investors\u2019 investment needs.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What-Should-Investors-Consider-While-Switching-from-IDCW-to-a-Growth-Plan\"><\/span>What Should Investors Consider While Switching from IDCW to a Growth Plan?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Investors planning to switch from IDCW to a growth plan should understand the primary and important difference between both plans, i.e., how returns are distributed. Once that is clear, note that switching from one plan to another in the same scheme is considered a \u2018sale\u2019. And for the switch, there is an exit load charged. Along with the exit load, there can be capital gains tax levied depending on the investment tenure.&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How-to-Get-the-List-of-IDCW-Funds-in-India\"><\/span>How to Get the List of IDCW Funds in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Follow the steps below to get the list of IDCW funds or IDCW option in <a href=\"https:\/\/www.tickertape.in\/blog\/advantages-disadvantages-of-mutual-funds\/\">mutual funds in India<\/a>:<\/p>\n\n\n\n<ul>\n<li>Log in to<a href=\"https:\/\/www.tickertape.in\/?utm_source=blog&amp;utm_medium=article\"> Tickertape<\/a><\/li>\n\n\n\n<li>Launch<a href=\"https:\/\/www.tickertape.in\/screener\/mutual-fund?utm_source=blog&amp;utm_medium=article\"> Mutual Fund Screener<\/a><\/li>\n\n\n\n<li>On the left, go to &#8216;Plan&#8217; and Select &#8216;IDCW&#8217;<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"508\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2023\/01\/Screenshot-2023-01-11-at-6.10.47-PM-1024x508.png\" alt=\"\" class=\"wp-image-11645\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2023\/01\/Screenshot-2023-01-11-at-6.10.47-PM-1024x508.png 1024w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2023\/01\/Screenshot-2023-01-11-at-6.10.47-PM-300x149.png 300w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2023\/01\/Screenshot-2023-01-11-at-6.10.47-PM-1536x763.png 1536w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Sort the list of funds according to your favourite parameter like AUM, NAV, 5Y <a href=\"https:\/\/www.tickertape.in\/blog\/compound-annual-growth-rate\/\">CAGR<\/a>, 3Y CAGR, etc.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Both growth and IDCW are good mutual fund choices. Choosing between growth and IDCW depends on your investment goals. Talk to your investment advisor and make a wise decision. You can use<a href=\"https:\/\/www.tickertape.in\/screener\/mutual-fund?utm_source=blog&amp;utm_medium=article\"> Tickertape Mutual Fund Screener<\/a> to find the top mutual funds for both growth and IDCW plans in India.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently-Asked-Questions-About-IDCW-vs-Growth\"><\/span>Frequently Asked Questions About IDCW vs Growth<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1672744066266\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"1-How-to-get-the-list-of-growth-funds-in-India\"><\/span><strong>1. How to get the list of growth funds in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Follow the steps below to get the list of growth mutual funds India using Tickertape.\u00a0<br \/>&#8211; Log in to<a href=\"https:\/\/www.tickertape.in?utm_source=blog&amp;utm_medium=article\"> Tickertape<\/a><br \/>&#8211; Visit the<a href=\"https:\/\/www.tickertape.in\/screener\/mutual-fund?utm_source=blog&amp;utm_medium=article\"> Mutual Fund Screener<\/a>\u00a0<br \/>&#8211; Under \u2018Plan\u2019 select \u2018Growth\u2019<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1672744068950\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"2-How-to-get-the-list-of-top-IDCW-mutual-funds-in-India\"><\/span><strong>2. How to get the list of top IDCW mutual funds in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>You can get the list of IDCW mutual funds India on Tickertape by following the simple steps below:\u00a0<br \/>&#8211; Log in to Tickertape<br \/>&#8211; Visit the <a href=\"https:\/\/www.tickertape.in\/blog\/how-to-use-tickertape-mutual-fund-screener\/\">Mutual Fund Screener<\/a>\u00a0<br \/>&#8211; Under \u2018Plan\u2019 select \u2018IDCW\u2019\u00a0<br \/>&#8211; Sort the list by different parameters like AUM, NAV, CAGR 3Y or more depending on your need to get the top IDCW funds.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>There are two alternatives in mutual funds returns disbursement &#8211; growth and IDCW (Income Distribution cum Capital Withdrawal). In this article, let\u2019s learn about IDCW, growth plan, IDCW vs growth and which is better.\u00a0<\/p>\n","protected":false},"author":136,"featured_media":11570,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[1750],"tags":[],"acf":[],"modified_by":"Aishika Banerjee","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2023\/01\/04-Jan-23-idcw-vs-growth-10.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/11536"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/136"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=11536"}],"version-history":[{"count":7,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/11536\/revisions"}],"predecessor-version":[{"id":17158,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/11536\/revisions\/17158"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/11570"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=11536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=11536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=11536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}