Ch.7 · Total Expense Ratio Limits · hard
What is the NAV impact when an equity scheme receives dividends from its portfolio stocks?
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EXPLANATION
When a portfolio company goes ex-dividend, the stock price typically falls by the dividend amount (reducing portfolio market value), but simultaneously the scheme accrues the dividend as income receivable (increasing cash/receivables). The net NAV impact is neutral at declaration. Once received, dividend cash is reinvested, supporting NAV. The growth option retains all such income within the scheme.
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