The dividend declared by a company is paid to the unit holders in either of the following ways -
- Direct credit in the form of NEFT (National Electronic Fund Transfer)
- By mailing the dividend warrants to the physical address of the investor, in case the bank is not registered under NEFT.
Under the NEFT payment mode, the company credits the dividend amount directly to the investor's bank account. The transaction is labelled as NEFT in the bank statement or passbook. The mutual fund company sends an intimation to the investor after the transaction has been processed.
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