123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Which Plan To Choose – Growth Or Dividend

Profile Picture
By Author: FundzBazar
Total Articles: 3
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

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: 874Word Count: 306See All articles From Author

Add Comment

Investing / Finance Articles

1. Breadalbane Finance Highlights Key Differences And Opportunities In Asset Finance Across Scotland
Author: Asset Finance

2. Authoritative Tips For Making Smarter Property Investment Decisions
Author: Rick Lopez

3. Why Do Small Businesses In San Francisco Need A Tax Advisor?
Author: GavTax Advisory Services

4. How To Start A Successful Career In Banking After Graduation
Author: sandeep

5. The Crucial Function Of An Investment Advisor For Making A Desired Real Estate Plan!
Author: Rick Lopez

6. Smart Money Moves In 2025: Top Financial Strategies Every Indian Should Follow
Author: Financenu

7. Stock Market Advisory: Choosing The Top Advisory Company In India For Smart Investments
Author: Vinay

8. How A Certificate Course In Retail Can Open Doors To New Job Opportunities
Author: sandeep

9. Top 5 Best Crypto Apps For Ios To Manage Your Crypto With Ease
Author: CryptoReach

10. Best Home Loan In Noida 2025 | Affordable Interest Rates & Easy Emi
Author: dhresh jindal

11. Smarten Power Systems Ipo: Complete Overview, Dates & Gmp Guide
Author: finowings

12. Banking And Finance Training In India: Scope, Opportunities, And Future Trends
Author: sandeep

13. How To Protect Your Crypto Wallet: Essential Tips Beyond Passwords
Author: Eldon Ryder

14. Ipo Grey Market Premium (gmp) Guide | Live & Upcoming Ipo Gmp Trends
Author: finowings

15. Top Benefits Of Enrolling In A Certificate Course In Banking
Author: sandeep

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