When does a Mutual funds declares dividend ?

[Mukulz]

Hi, I usually invest through MFs route. I have some basic queries, pls help me out -
1. When does a Mutual funds declares dividend ?
2. Which factors makes the funds decide the percentage of dividend?

[policy]

Hi, I usually invest through MFs route. I have some basic queries, pls help me out -
1. When does a Mutual funds declares dividend ?
2. Which factors makes the funds decide the percentage of dividend?
When the MF is in profit and wants to attrect new investors, than they give dividend. You normally see big advertisement, when its coming. Percentage is decided by the management on the basis of the performance of the fund and other factors etc..

[abhijeet06]

There are 3 major factors that drive the decision of dividend declaration.
1) Fund policy - Certain funds have a stated policy of dividend declaration & so they keep declaring dividends from time to time.
2) Competition - When other MFs are declaring dividends than fund house will take notice and decide for declaring dividend.
3) The market - If Fund house has lots of money in the kitty, than decide after seeing the market.