123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Investing---Finance >> View Article

Which Plan To Choose – Growth Or Dividend

By Author: FundzBazar
Total Articles: 7

The option you pick should depend on the

Cash requirement & investment time horizon
Tax efficiency
In case of Equity Funds

Equity funds are meant for long term investments. Those who want to create wealth or achieve long term financial goals should choose growth option. It will help you to stay invested rather than cashing out from your long term funds.

Exceptions to Growth option

- In case of thematic or sector funds, it would be wise to choose dividend payout option as you will able to book profits when that particular theme or sector is in uptrend. Returns from these categories are highly volatile and it will be difficult to predict the time of exit from these funds

- Those looking for regular income such as retirees, monthly dividend option in Hybrid funds like Balance funds, Equity Savings Fund or MIP will be a good option to select.

In case of Debt funds

Debt funds are meant for short term as well as for long term investments depending on the needs of the investors. Those looking for regular income should select dividend option.

Less than 3 years:

- If you fall in the 10 percent or 20 percent tax bracket, it would be wise to opt for growth option.

- For those in 30 percent tax bracket should select dividend option as DDT paid by the AMC in case of debt funds is around 28.32% in case of Individual/HUF/NRI.

- Companies/corporates should select growth option as they fall in 30% tax bracket and DDT paid by the AMC is also 30%. So for them it will make no difference whether they choose dividend option or growth option.

More than 3 years:

- For all investors including corporates, it would be wise to choose growth option as they can take the benefit of indexation which will provide them higher post tax return.

Happy Investing!!!

Total Views: 54Word Count: 306See All articles From Author

Investing / Finance Articles

1. Receive The Best Bookkeeping Service With The Help Of A Professional Bookkeeper Sunshine Coast
Author: Monique Bock

2. Bse Extended The Deadline For Mutual Funds Investors To Link Their Adhaar Card
Author: Robin Scott

3. How To Get Right Business Loan In Mumbai
Author: Amit

4. How To Identify Stocks Through Fundamental Analysis Of A Company?
Author: Chetan Rathod

5. How To Be A Successful Intraday Traders
Author: Robin Scott

6. Looking For A Business Loan – Heard About Loan Against Property And Loan Against Bonds?
Author: Chetan Rathod

7. Why It Is Important To Diversify Your Investments
Author: money classic research

8. Some Devious Tricks To Win The Stock Market
Author: Robin Scott

9. Finance Your Mobile With 0 Percent Interest Loan
Author: Meenal Wahi

10. Mcx Free Tips And Nifty Option Tips – All In Accurate Way To Gain More Profits
Author: Sandy Allen

11. 5 Simple Hacks For Reducing Ac Repair Cost
Author: Rajesh Patil

12. Advantages Of Payday Loans
Author: Broad Stevens

13. Seeking For Huge Returns? – Know The Top Penny Stocks For 2018 India
Author: Robin Schott

14. Challenges Faced During Merger And Acquisitions By Firms
Author: Sandeep Sharma

15. Why It Is Important To Understand Your Risk Tolerance
Author: Robin Schott

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: