InvestorQ : Do index funds give better dividends than stocks?
shivangi Arora made post

Do index funds give better dividends than stocks?

Khushi Patel answered.
1 month ago

Yes, you can do that. As to when will you get the dividend, it is dependent on the fund you have invested in and the option you have chosen. Many index funds do not have a dividend option. This means that any gains you wish to take will have to be obtained by redeeming units from the fund.

If you are invested in the dividend option of an index fund, you can wait for the scheme to declare dividends or withdraw units. Deciding between dividend stocks vs index funds can initially be driven based on experience. And sometimes you need to go through those cycles to build confidence in order to build the investment portfolio that’s right for you. Alternatively, you can do both!