considering new tax rule which is better dividend or groth option of a mutual fund and is it to shift to which?

2 Replies to “considering new tax rule which is better dividend or groth option of a mutual fund and is it to shift to which?”

1. Subscribe with a bank sponsored mutual fund.

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3. Dividend payout lowers the NAV of a fund to the corresponding extent. That should make both options equal.
   But – and it’s a VERY BIG ‘BUT’, dividend payout has a cost by way of ‘DIVIDEND PAYOUT TAX’.
   So, the investors are net losers of the NAV to that extent.
   Hence, ‘GROWTH’ option is wiser.
   Any objections to this view?

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