Dividend Payout Vs Growth NAV value significance

[shk161]

Hi Investors,

I would like to know a basic difference between Growth and Dividend options in mutual funds.

I have the basic idea that Growth is for long term investment and Dividend option is for income at short intervals. Lets take a example of buying 100 shares of Growth and Dividend both of say X mutual fund.

100 * 10(NAV) on 15th July = 1000 Rs (Growth)
100 * 5 (NAV) on 15th July = 500 Rs (dividend)

Now after a year

100 * 14(NAV after an year) on 15th July 2017 = 1400 Rs
100 * 6 (NAV after an year) on 15th July 2015 = 600 Rs

I plan to sell off my units for both Dividend and Growth option now the Profit I should be expecting is the total NAV amount for both Growth as well as Dividend units(+any dividend paid in 1 year).

Basically the NAV of Dividend option increases is also in my profit right?Whenever I plan to sell, It would be my profit whatever the current NAV is in dividend option apart from the dividend paid?

Kindly help.

 

[shk161]

koi help karega kya bhai?? :annoyed:

 

[shk161]

huh bad...


am sure its not that tough for someone experienced to explain...many will be knowing this but no time to explain here

 

[shk161]

people are either sleeping pr lazy to help :annoyed:


huh joined this site tp gain some knowledge trying my best to share my knowledge hope same from others as well