Dividend Mutual Funds/REIT Funds vs Direct Investing: What’s the actual advantage?
I’ve seen quite a few discussions on this sub around investing in dividend mutual funds, REIT/InvIT mutual funds, and using IDCW to generate regular payouts.
As someone relatively new to dividend investing, I’m struggling to understand the actual advantage of doing this through mutual funds compared with directly investing in dividend-paying stocks, REITs, or InvITs and receiving the distributions directly.
Could someone illustrate this with a simple example, ideally comparing the returns, taxation, flexibility, and overall outcome of both approaches?
u/Electronic_Usual7945 — if you have the time, it would be great if you could explain this. Alternatively, a wiki article on this topic would probably be useful for many people trying to make an informed choice.