This is an investment fund in which investors’ pool in their money mutually. Dividend in a mutual fund scheme refers to a portion of a company’s realised profit i.e. the gain it has made by selling the units at a rate higher than what it had cost them during purchase. It is prevalent in large companies which are financially well established and thus often pass through a portion of their profits in the form of dividend income and is an exciting scheme for more investors. It may occur in the form of stocks, mutual fund returns, and more.