Investor Presentaiton
Mutual Fund Plans - Growth vs Dividend Options B
Growth
Option
•
•
•
Gains made in portfolio are retained and reflected in NAV.
Realized profit/loss is treated as capital gains or loss.
No increase or decrease in number of units, except if units
are purchased or sold, by the investor.
Dividend
Payout
Option
• Fund declares dividend from realized profits.
•
• Amount and frequency varies and depends upon distributable
surplus.
NAV falls after dividend payout to the extent of dividend paid.
Dividend
Reinvestment
Option
Dividend is re-invested in same scheme by buying additional
units at ex-dividend NAV.
• Number of units standing to the credit of the investor,
increases each time a dividend is declared, and reinvested
back into the scheme.
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