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Dividend or Growth for Equity MF

Discussion in 'Mutual Funds' started by grv1007, Nov 1, 2016.

  1. grv1007

    grv1007 New Member

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    Which option to be chosen for equity MF?
    As in fluctuations of markets, dividends give some income and Growth helps in wealth building..
    So
    Dividend or Growth....??

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    grv1007, Nov 1, 2016
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  2. shabbir

    shabbir Administrator Staff Member

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    I always prefer dividend option because I am most often beat the best mutual fund by big margins but if you cannot do that, it is always better to be going for growth options.

    Now again when I opt for dividend, I am investing very heavily per month as well and so you should look from that perspective as well.

    So if you can beat mutual fund, you should opt for dividend and then invest that in stocks otherwise you can go for growth option.
     
    shabbir, Nov 1, 2016
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  3. akashgupt81

    akashgupt81 Active Member

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    What is the difference between growth vs dividend mutual fund?
     
    akashgupt81, Nov 7, 2016
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  4. shabbir

    shabbir Administrator Staff Member

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    In vey simple terms dividend funds are those funds where mutual funds when book profit or receive dividend is given back to the investor for them to use and growth use that money to reinvest back.
     
    shabbir, Nov 8, 2016
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  5. drjlbansal

    drjlbansal Member

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    Dear Shabbir,If we don't invest dividend in stocks,is it useful to reinvest dividend in same fund.
     
    drjlbansal, Nov 11, 2016
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  6. nirajshah

    nirajshah Champion

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    But better to invest in growth option then

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    nirajshah, Nov 12, 2016
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  7. shabbir

    shabbir Administrator Staff Member

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    Yes you can but that will be pointless.
     
    shabbir, Nov 12, 2016
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  8. sethuramcbe

    sethuramcbe Responder

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    Think this way you go to atm take cash and go to counter and deposit back ,time loss and time in market lost etc.
    Remember mutual funds manager can manage a growth stock if less redemption is there,

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    sethuramcbe, Nov 12, 2016
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