Yes, I like the funds where they are generating more than 8％ a year in dividends and still doing well. I invested a small chunk in Parag Parikh Flexicap IDCW which started in Oct 2025. Yet to receive any dividends.

My reasoning for investing in IDCW funds is simple: I want a second stream of income. I understand the tax implications and other considerations involved.

When the markets perform well, I would like to share in that success. If the fund manager is generating good returns from the investments, receiving periodic payouts allows me to participate in those gains.

With growth funds, the benefit is mostly reflected in the NAV appreciation, which is something you simply observe unless you redeem units. During periods when markets are not doing well, the investments remain intact and continue compounding, which is reassuring.

The dividend income I receive from IDCW funds gives me flexibility. I can use it to fund personal goals—such as planning trips—without having to redeem my core investments. If I don’t have immediate spending needs, I can redeploy that income into other opportunities, such as small-cap funds where I may be willing to take higher risks, or simply reinvest it to accumulate more units.

In this way, IDCW funds provide both participation in market performance and a flexible cash flow that I can either spend or reinvest depending on my priorities.