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: 339Word Count: 306See All articles From Author

Add Comment

Investing / Finance Articles

1. What Are The Different Types Of Personal Loans?
Author: Anujit Bhattachaarya

2. Expand Your Home-buying Options With Rural Development Loans Online Near Me
Author: vikram kumar

3. More Impactful Returns: Esg Investment
Author: Avendusgroup

4. Billing Challenges In Wound Care Billing System
Author: Danny John

5. Can Usda Home Loans California Near Me Help Us Find Our Dream House?
Author: vikram kumar

6. Top Investment Books To Get Started In 2021
Author: george

7. Why Usda Home Loans Alaska Near Me Are A Great Deal
Author: vikram kumar

8. Benefits Of Equipment Financing
Author: Joseph May

9. Direct Lender Online Installment Loans And Instant Approvals
Author: Novlik

10. Products And Services Of Monetas
Author: john francis

11. Taking Advantage Of Usda Loans Laredo Near Me
Author: vikram kumar

12. 10 Things To Know About Currency Trading
Author: Ella

13. Bitcoin Cash Vs Bitcoin
Author: jessica smith

14. How Usda Home Loans New Jersey Near Me Helps You Invest Property
Author: vikram kumar

15. What Is The Process Of Usda Loans Fort Worth?
Author: vikram kumar

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