HDFC Prudence Balanced Fund Growth SIP and Tax Exemption advice?


I am new to mutual funds. I want to invest 20 thousands per year through SIP in HDFC prudence balanced fund Growth. I wanted to know that i have an investment prospective of 2 years. I wanted to know is it a right fund to start investing in and i want tax exemption also.So, regarding both things, will it be a right pick as i have read some where that its best to start investing through balanced funds?? Please provide help

What is the meaning of growth and dividend option in mutual fund ?

i m trying to figure out what is that mean? pls give me example with numbers !
invested money = 25000
old nav (1yr ago) = 19
latest nav= 16
number of unit held= 1562
1) what happen after 1 year if my plan is growth
2) what happen after 1 year if my plan is dividend

pls give me good & helpfool answer i m new in this field
trying to learn about mutual fund????????