Growth vs Dividend

POSTED BY Sai ON February 11, 2011 5:55 pm COMMENTS (2)


I dont know whether its already been answerd here in the forum. Never the less,

I would like to know the difference between Growth & Dividend Mutual funds. We can consider Equity funds for example and can track how its different. What are its advs & disadvs. How to choose either of these funds?

Appreciate your response.



2 replies on this article “Growth vs Dividend”

  1. Rajesh says:

    Hello Sai,

    A very relevant article that you may want to read is here. I hope you find an answer to the question you asked through this article.

    Do feel free to ask further questions…

    Happy informed investing

  2. bharat shah says:

    for equity mf ,in dividend option the scheme declares dividend after some growth in its nav and the nav is decreased by that a/m , provided its nav is increasing, whereas in growth option , it remains with the fund. such dividend remains non taxable at present tax laws, whereas in both cases the capital gain after one year is long term capital gain and tax free as now. as per my personal opinion, better go with growth option, if you have no specific reason to select dividend option. particularly for elss schemes, never opt for dividend with reinvestment option, as such a/m gets reinvested for 3 years automatically.

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