Star Rating of Dividend Plan

The reason of rating the growth options at Value Research


I understand that the star ratings given in the score board are for growth option of a fund. But what about star rating for dividend pay-out option? Is the star rating same for growth, dividend pay-out and dividend re-investment options? If no, then from where and how can I find star rating for dividend pay-out option?
-R.L Desai.

Yes, you are right. Value Research rates the growth plan of all funds where the underlying portfolio is same. The reason behind is that in most of the funds the underlying portfolio of all three options - Dividend Payout, Dividend Reinvest ,and Growth are same. Hence the returns generated by each plan are also same. Therefore it does not make much sense in rating all the plans separately. The rating of any one plan applies very to any of the plans.

But there are certainly exceptions, in many a cases the portfolio of a growth plan would be different from the portfolio of a dividend plan. In this kind of cases the plans are treated as two separate schemes and rated accordingly. If you go through our website or score board carefully then would find an odd mention of a dividend plan with its own rating. If you go further and compare its return with its growth counter-part then you would find that the returns generated by each of the plans are different.



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