What is the record date in the context of mutual fund dividends?
A
The date when the dividend is paid to investors
B
The date used as the cut-off to determine eligibility to receive the dividend based on the register of unit holders
C
The date when the NAV is announced after the dividend payout
D
The date when the trustees decide the amount of the dividend
Correct Option:
B
Explanation
The record date is the cut-off date used to determine which unit holders are eligible to receive the dividend declared by the mutual fund. Only investors whose names appear in the records on the record date are entitled to the dividend.
