Bank of India Small Cap: Same Returns, Different NAVs — SkimNews
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Growth option retains earnings within the scheme rather than distributing them, allowing returns to compound through NAV changes until investors redeem their units.
- IDCW option may distribute part of the available surplus under scheme terms, but the amount is not guaranteed and NAV falls by the distribution; Payout pays cash, while Reinvestment buys additional units at the applicable NAV.
- SEBI renamed the dividend option IDCW on April 1, 2021, to clarify that distributions can include both income and capital and therefore are not automatically additional profit.
- Motilal Oswal Focused returned 20.29% year to date in its Growth option versus 19.91% for both IDCW options, while the respective NAVs were ₹62.33 and ₹25.62.
- Bank of India Small Cap had identical Growth, IDCW Reinvestment and IDCW Payout returns in Morningstar's October 19, 2026 data, despite NAVs of ₹64.89 for Growth and ₹48.60 for each IDCW option.
- TrustMF Small Cap showed identical returns across Growth, IDCW Reinvestment and IDCW Payout, with all three options carrying a NAV of ₹13.49.
Why it matters: An investor using only Bank of India's ₹64.89 Growth NAV versus ₹48.60 for IDCW would miss that Morningstar's October 19, 2026 data show identical returns. The consequential choice is whether the investor values a compounded corpus or periodic cash distributions, not which option carries the higher per-unit NAV.
Ask SkimNews
