Don't Invest for Dividends Sake

SBI Taxgain is generating yearly dividend, but the net asset value (NAV) value has become half of my investment. Why is that?
In a mutual fund (MF), a person should not get happy just because he/she is receiving dividends. It is possible that you are getting dividends that are basically the same money that you had invested. An investment made in March of 2008, when the market was ruling at its highest levels, would have fallen to half of its value.

This article was originally published on July 22, 2009.