Dividends are declared in HSBC Mutual Fund Schemes from time to time subject to availability of distributable surplus. For equity funds as well as debt funds, income in the form of dividends is tax-free in the hands of the investors of units of mutual funds specified under section 10(23D). The dividends may be paid out in the form of warrants or directly credited to the investor’s bank account (in case he has chosen the dividend payout option) or will be re-invested back into the mutual fund itself at the prevailing NAV (in case he has chosen the dividend re-investment option or growth option). The dividend warrants shall be dispatched to the unit holders within 30 days of the date of declaration of the dividend.

The frequency of dividend declaration varies from scheme to scheme. Equity schemes may declare dividends as and when relevant. Some debt schemes offer dividends on a regular basis like a daily dividend or a weekly dividend or a monthly dividend. You can click on the below links to get a history of dividends declared in our mutual fund schemes based on their frequency.

Dividend Distribution Policy

The Trustees propose to follow the following dividend distribution policy:

Declaration of dividend is subject to the availability of distributable surplus. Such dividends if declared will be paid under normal circumstances, only to those Unit holders who have opted for Dividend sub-options with specified sub-options. Further, no entry/exit load shall be charged for units allotted under dividend reinvestment option.

However, it must be distinctly understood that the actual declaration of dividends under the Scheme and the frequency thereof will, inter alia, depend upon the distributable surplus of the Scheme. The Trustees reserve the right of dividend declaration and to change the frequency, date of declaration and the decision of the Trustees in this regard shall be final. There is no assurance or guarantee to unit holders as to the rate of dividend distribution nor will that dividend be regularly paid.

The dividend that may be paid out of the net surplus of the Scheme will be paid only to those Unit holders whose names appear in the register of Unit holders on the notified record date. The dividend will be at such rate as may be decided by the AMC in consultation with the Trustees.

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