MF scheme, Dividend , Growth or Bonus

[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

[kalpesh_13]

hi all,
I have confusion with the growth plan & dividend reinvestment plan.As i understand in growth plan no of units increases & in reinvestment plan they reinvest our divident,but in which form because if it is again in no of units then it is same as the growth plan.

[ajesh]

Originally Posted by kalpesh_13

hi all,
I have confusion with the growth plan & dividend reinvestment plan.As i understand in growth plan no of units increases & in reinvestment plan they reinvest our divident,but in which form because if it is again in no of units then it is same as the growth plan.

hi kalpesh

Growth Plan and Dividend Plan
A growth plan is a plan under a scheme wherein the returns from investments are reinvested and very few income distributions, if any, are made. The investor thus only realises capital appreciation on the investment. This plan appeals to investors in the high income bracket. Under the dividend plan, income is distributed from time to time. This plan is ideal to those investors requiring regular income.
Dividend Reinvestment Plan
Dividend plans of schemes carry an additional option for reinvestment of income distribution. This is referred to as the dividend reinvestment plan. Under this plan, dividends declared by a fund are reinvested on behalf of the investor, thus increasing the number of units held by the investors.
Automatic Investment Plan
Under the Automatic Investment Plan (AIP) also called Systematic Investment Plan (SIP), the investor is given the option for investing in a specified frequency of months in a specified scheme of the Mutual Fund for a constant sum of investment. AIP allows the investors to plan their savings through a structured regular monthly savings program.
Automatic Withdrawal Plan
Under the Automatic Withdrawal Plan (AWP) also called Systematic Withdrawal Plan (SWP), a facility is provided to the investor to withdraw a pre-determined amount from his fund at a pre-determined interval.

[sarathc]

One more elaboration from industry specialists: http://www.valueresearchonline.com/l...g.asp?str=7768

[vijbala]

In Growth plan- the unit value keep on increasing.
In Dividend reinvestment plan - you get additional units for the dividends

[aakamave]

hi Frndz

I Am New To This Site And This Is My First Post.

I Want To Know The Calculation Of Dividend Procedure In Mf.

As I Am Investing In A Fund With Growth Option Since Oct 06 Trhough Sip, Could You Please Tell Me How Dividend Will Be Adjusted In My Case.

Also I Am Investing In Mf For 15 Yrs Period. As Of Now, Would I Be Liable To Pay Taxes On The Proceeds Coming From Mf After 15 Yrs.

Regards

Ved

[aakamave]

waiting for senior members reply
please
ved

[yoogi]

There is no tax liable on you on any time, as of present income tax rules.

Since you have chosen growth option, then you dont have to pay tax on dividends as there is none...

As of now, you dont have to pay tax on the returns (that you planned to take after 14 years.)

But if chidambaram wants to tax that, your returns will be diminished..

[aakamave]

Thanx sir for your kind reply
With warm regards
VED

[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