HDFC mutual funds

[sam_14189]

Hi All,
I am new in Share Market and mutual funds.Please help me in explaining the difference between HDFC Tax Saver (D) and HDFC Tax Saver (G)?

 

[shilpaks7]

D- dividend option
G - growth option

The dividend option does not re-invest the profits made by the fund though its investments. Instead, it is given to the investor from time to time. In the growth scheme, all profits made by the fund are ploughed back into the scheme. This causes the NAV to rise over time.

The NAV of the growth option will always be higher than that of the dividend option because money is going back into the scheme and not given to investors.

What you need to remember is that the dividend is not guaranteed.

If you are looking at a long-term investment and are not interested in money being given to you at various intervals, then the growth option is good. If you are want to receive an income at various intervals, then th dividend option.

Check these
http://www.investopedia.com/ask/answers/05/051205.asp#axzz1Ud9AzuOw
http://www.itrust.in/forum/mutual-f...dividend-or-growth-option-which-one/4560.page

 

[rvm123]

As explained D is Dividend option and G is growth option. However, under Dividend option normally there will be two options - 1. Dividend payout and 2. Dividend re-investment. In payout, the dividend declared witll be paid to the investor. In re-investment, on the date of declaring the dividend, at the NAV of that day, the dividend will be re-invested in the same scheme and additional unit will be alloted and added back to the holdings of the investor.