Can you explain the difference between growth and dividend re-investment option? Which is better?
- Y Khan
Often, dividends are perceived to indicate a fund’s performance. This is not true, as dividends are deductions from your fund account. In a growth option, this same money would be added to your account, as against passing it on to you in the form of dividends. Hence, in terms of returns, there is no difference between the growth and dividend re-investment option when investing in a fund.