Lux Investing

Which option i should choose either Growth or Dividend while investing in Mutual Funds?

I decided to invest in SIP in Mutual Funds. But which option i should choosed: 1) Growth 2) Dividend 3) Dividend Payout option Reply Atul

Public Comments

1. It depends on a number of factors and your priorities as well.. If you are looking out for a really long term investment, then clearly the Growth option is there for you as the NAV does fall at any point and the amount grows exponentially. But if you are looking out for short-term investments and want some money back with you at short intervals, you can opt for Divident option.. Happy Investing :)
2. Depends what your timeline is. Long term go with Growth. If it's short term and you need stability, I'd go with one of the dividend options. Does your #3 reinvest the dividend?
3. Depends on your needs and the type of account you open. If this is a taxable account (not IRA) the dividend and dividend payout option will result in taxable income. The Growth option will only yield taxable income if there is a disbursement. If you open an IRA none of this matter. In an IRA you should look for the best risk/return and disregard the style of the fund.