MF scheme, Dividend , Growth or Bonus

[kalwarik]

GROWTH is better

[mrindia]

As rightly said, in India, DDT is applicable to DEBT FUNDS/DEBT oriented Funds only. In your particular case, both Gr & Div-Reinv options will prove to be same; if same tax structure persists.
Among the 2 funds, I will rate DSP ML Top100 above HSBC Eq. Views from other members are welcome!
mr india

[justsayraj]

DSP ML Top 100 comes ahead of HSBC Equity..

Growth option (my choice) , even though Growth and Div - Reinvestment works out same approximately..

[VOICE OF REASON]

Thakur,

One should always go for growth option if looking for optimal growth of funds invested.
However, depending on your liquidity reqirements, you may elect to go with the dividend option. PLEASE BEAR IN MIND, never go with dividend reinvestment because it will lock your money for 3 years again form the day the devidend is reinvested.
Feel free to email me if you have any further questions. Hope this helps you!

[VOICE OF REASON]

Originally Posted by thakur

Hi friends,

i am going to invest 20k in SBI Magnum Tax gain Mutual fund shortly.
but i m confused which option (Growth ,dividend ) is better to go with.
Can anyone tel me the pros and cons of these options.


thanks
thakur

Thakur,

One should always choose growth option if looking for optimal growth of funds invested.
However, keeping in mind liquidity requriments, you can elect to go with dividend option.
PLEASE BEAR IN MIND, never elect dividend reinvestment incase of a tax saving scheme because it will lock your funds (amount reinvested as dividend) again for a peiod of 3 years from the time of reinvestment. Hope it helps. Any further questions, send me an email.

[new.invester]

hello everyone,

i am a new nri invester.
i had been quietly following this thread,it is really good ind informative.

thanks for all the questions and answers

regards


natasha

[unclecharles16]

Originally Posted by ritz1

Hi,
Can anyone explain the difference between Growth and Dividend options in MF? Which one is better or preferable in terms of Tax savings MF or any other MF??

This is my first post So sorry if there is a mistake.
I am new to investing

I feel that in growth money wont be removed from the(investment) account till u sell ur Unit.(positive is ur invested money is always working,
negetive is if the market is bad all ur investment gose down )
but in Dividend option money will be removed from the account, when dividend is announced to pay for taxes and distribution.but u will be having more units with the dividend u receive. (positive is u have more shares so ur actual invested amount will get some support from the devidend units u earn even if the market is going down,Negitiveis the Unit Nav growth will be a little slow as Money is removed from the fund during dividend announcments.

[pearsbent]

Hello guys

dividend is payed out by the fund as decided by the fund manager. the nav goes down once the dividend is declared. The advantage is that it is a way of partially booking profits. The disadvantage is that dividend distribution tax has to be paid . (I think it is 10%). In Growth option the money is collected in the end. Here if you remain invested >1 year there is not tax.

Have a any other ideas,