MF scheme, Dividend , Growth or Bonus

[Vicky78]

To sum it up

use growth option if you want your returns compounded. This is a more aggressive option as in a rising market it will fetch you greater returns. Similarly in a declining market (like 2000,2001) it will fall harder as the loses are compounded

use dividend payout option if you want to book profits automatically as and when decided by the fund house so that loses are minimized during a declining market.

[heena_chirag]

Dear Friends,

I am new to this Mutual Fund business, i have to ask some questions about Mutual Fund,

At latest i read prospects for Reliance Natural Resourse fund, There are mention two plan Growth Plan & Dividend Plan or Bonus Plan, i have to ask some question on it,

1) Whats difference Between Growth Plan or Dividend Plan or Bonus Plan? How i can get profit on each plan?

2) How can i apply for Reliance Natural Resourse fund? Can i get this mutual fund in my Demat Account after alloted? Can there any time limit for sell it or i can sell any time after alloted?

Please give me some clues & solution on above question,

thanks,

Chirag

[Dil se!]

Dear All,
Good Morning !
I am very new to MFs.
I have invested Rs.10000 in SBI Magnum Tax Gain(D) scheme in last month and AMC is going to declare dividend on 15 Feb 08.
My question is,
Would i get the dividend benefit?

Pls clarify.

Cheers!
Dil Se!

[marghadedk]

as you have invested in the dividend option of the SBI Magnum Tax Gain Scheme and as the company is going to distribute the dividend of 110% on 15th Feb, you will definitely get the dividend of Rs.11/unit, on the units alloted to you.

[MFadvisor]

Originally Posted by mail2joshi

Hi All,
I am confused between these three scheme :
Dividend, growth and Bonus from any Equity Diversified MF scheme.
Does some one please suggest me which scheme is better Dividend, growth or bonus.
looking at the past performance growth is doing well.

Also Any openion about Reliace Vision Fund

Regards
sjoshi

Dividend is better if you want some money back regularly as and when Fund declares dividend.

Growth is better if you have long term horizon and don't want the money regularly.

[MFadvisor]

Originally Posted by Dil se!

Dear All,
Good Morning !
I am very new to MFs.
I have invested Rs.10000 in SBI Magnum Tax Gain(D) scheme in last month and AMC is going to declare dividend on 15 Feb 08.
My question is,
Would i get the dividend benefit?

Pls clarify.

Cheers!
Dil Se!

if you have invested in Dividend payout option you will get the money

[arvindm29]

18Mar08 -Sebi announcement Load on Bonus Units and units allotted on Reinvestment of Dividend
Original source document can be found at: http://www.sebi.gov.in/circulars/2008/cir142008.pdf

DEPUTY GENERAL MANAGER
INVESTMENT MANAGEMENT DEPARTMENT

SEBI/IMD/CIR No. 14/120784/08
March 18, 2008

All Mutual Funds Registered with SEBI
Association of Mutual Funds in India (AMFI)
1. The practice of charging load on bonus units issued to unit holders by mutual
funds was taken up with AMFI. Based on the recommendations of AMFI
Working Group on Standardization of Key Operational Areas, it was decided that AMCs shall not charge entry as well as exit load on Bonus units and of units allotted on reinvestment of Dividend.

2. While necessary advice in this regard is already being given to Mutual funds at the time of filing of draft offer documents, AMCs are hereby advised to make necessary disclosures in this regard in the draft offer documents filed with SEBI.

3. The provisions of this circular shall also be applicable to redemption by existing unit holders with effect from April 1, 2008. Necessary addendum may be issued by the AMCs in this regard.

4. This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

[Candiasg]

I am new to mutual fund and stocks. i am spending hrs on this forum. Now I am neer to invest in mutual funds. Want experts advise about which plan I should go for.

Equity based deversified (G) OR

Equity based deversified Dividend re-invest OR

Equity based deversified dividend

Investment will be for long time term, 3-5 years
Any other suggestion will be welcome

Thanks

[justsayraj]

If it is for medium to long-term go for either option 1 or 2.

[Candiasg]

Thanks "justsayraj" for prompt reply. what a wonderful place to learn.

Any reliable websites which provide data of mutual fund about performance history for about 5 years and comparesion among mutual funds.

Thanks