hope u r asking for the difference between growth option and dividend option of a mutual fund. In dividend option, at some intervals, the fund managers may declare some dividend (may be when NAV is increasing beyond a limit). In growth option, no dividend will be declared and the NAV will be going on increasing.
In dividend option there are two schmes - Dividend payout and Dividend reinvestment. In payout, the dividend amount will be distributed to the unit holder; in the reinvestment plan, the dividend (as and when declared) will be invested in the same scheme at the latest NAV and the number of alloted units will be added to your units. thus the number of units will be going on increasing
