i think dividend option is better so now how i can shift from growth to dividend option
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i think dividend option is better so now how i can shift from growth to dividend option
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Subscribe with a bank sponsored mutual fund.
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?