Plans tell us about the payout structure of the funds. These are classified into 3 categories which are as below -
- IDCW (Income distribution cum capital withdrawal) - They distribute gains in form of dividends to investors. The dividend is nothing special, it is what you have earned from your investment.
- Growth plan - Funds that do not include any distribution of gains through dividend, they let the invested value compound over the years.
In growth plans the gains are left invested and they keep compounding with the invested value, while in IDCW the gains are distributed to the investors.