Mutual Funds Investing : Dividend or Growth option ? Which one to choose?
2 posters
Page 1 of 1
Mutual Funds Investing : Dividend or Growth option ? Which one to choose?
Selecting either dividend or growth option entirely depends on investment objective and profile of investor.
If an investor wants a regular income through his investment in form of dividend then he can go for dividend option but one thing has to be remembered that dividend is not guaranteed and regular. If a fund house has declared 20% dividend in a scheme last year that does not mean dividend will be declared under the same scheme this year as well and quantum of dividend also varies year after year.
But if an investor is looking for wealth creation by investing for long period of time then growth option can be an ideal as profit generated by fund remains within the scheme and NAV keep growing over a period of time.
So,opt for dividend option if you are looking for regular income from your investment otherwise opt for growth option to build long term wealth and take advantage of power of compounding.
So Whether to go for dividend option or growth option depends on every investor's investment horizon, risk taking capability and objective.
If an investor wants a regular income through his investment in form of dividend then he can go for dividend option but one thing has to be remembered that dividend is not guaranteed and regular. If a fund house has declared 20% dividend in a scheme last year that does not mean dividend will be declared under the same scheme this year as well and quantum of dividend also varies year after year.
But if an investor is looking for wealth creation by investing for long period of time then growth option can be an ideal as profit generated by fund remains within the scheme and NAV keep growing over a period of time.
So,opt for dividend option if you are looking for regular income from your investment otherwise opt for growth option to build long term wealth and take advantage of power of compounding.
So Whether to go for dividend option or growth option depends on every investor's investment horizon, risk taking capability and objective.
Re: Mutual Funds Investing : Dividend or Growth option ? Which one to choose?
Hey according to investing in Mutual Funds is a growth because it's the easiest way to get good returns in less time...DSP BlackRock is a 'CRISIL' award winning company in India for its Mutual Funds services..it also offers different types of funds like Gold Funds and Equity Funds etc...
ronak- MoneyTalker
- Number of posts : 34
Age : 44
Location : Mumbai
Registration date : 2010-06-09
Similar topics
» How do Mutual Fund manage to pay huge dividends ?
» 10 reasons for investing in Mutual funds........
» How PMS is different from mutual funds?
» Mutual Funds Concept......
» How toget advice on stock and Mutual funds buying or selling
» 10 reasons for investing in Mutual funds........
» How PMS is different from mutual funds?
» Mutual Funds Concept......
» How toget advice on stock and Mutual funds buying or selling
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum
|
|