MF scheme, Dividend , Growth or Bonus

[johnbest]

Re: Growth VS dividend

dear

Dividend PAYOUT option will pay you money from your current market value ie from your money which had grown due to increase in NAV. Whereas the Growth option will not do like this. Another option is Dividend Re-Investment will invest the Dividend received thereby increasing the units.....

What I suggest is and I do it....receive the dividend regularly and when the NAV comes down I invest them...but this will work after some time say 3-5 yrs...

And one more thing.....in MF, the money will definitely grow to huge amount if left there for atleast 5 yrs....

The fund selected by you is one of the best fund we ever have....and this fund has a lock-in period of 3 yrs...

have a nice day
JB

 

[loosingstreak]

Re: Growth VS dividend

A question here, does not the growth option achieve the same effect as reinvesting dividend received , but without the transaction costs. So is it not better?
Do advise.

 

[james]

Re: Growth VS dividend

Hi

I am of the view that it does not matter at all.

Please have a look at this idea.
http://www.rediff.com/money/2007/mar/16perfin1.htm

 

[loosingstreak]

Re: Growth VS dividend

Nice article. Thanks for the link.

 

[vsridh]

Re: Growth VS dividend

tax aspect has not been discussed. Dividend and dividend reinvest have different tax treatment.

 

[loosingstreak]

Re: Growth VS dividend

The link above contains info on the tax angle as well.

 

[thakur]

Re: Growth VS dividend

thanks everyone of u

 

[navneetsingh]

Can anyone explain different payout options of mutual funds?

hi,

I am new to trading and stock market. Can anyone explain me the difference between:
a. Dividend payout
b. Dividend reinvestment
c. Growth

thanks
navneet

 

[dipesha]

Re: Can anyone explain different payout options of mutual funds?

Dividend Payout-->When u go for this option u r supposed to get the dividend declared by fund.Whenever Dividend is declared u will observe fall in ur NAV
Dividend Reinvestment-->In this Case whenever dividend is declared ..Instead of giving dividend to u ..it will be again invested in ur fund.
Growth-->It is most opted choice of investors .In this kind of funds Dividends are not declared but ur investment will grow.

 

[navneetsingh]

Re: Can anyone explain different payout options of mutual funds?

Growth-->It is most opted choice of investors .In this kind of funds Dividends are not declared but ur investment will grow.

Thanks for your reply,

I understood the first two as they were straight forward. Can you explain more about growth? How the investment will grow?

thanks in advance
navneet