Growth Option & a Growing Gift

Birla Tax Saving Fund has introduced a growth option. Should we go for that? Secondly my brother had a baby. Would insurance be good for him or something else?

You can accumulate your money even if you do not switch to the growth option. You just have to make sure that instead of dividend, you need to subscribe to the dividend re-investment option - most funds offer this alternative. In that case, you will not get dividend, you will be allotted units instead. Its impact on your account would be just like a growth option. It would also not have any tax implications.

As for your second option, if you want a gift for your nephew, then why think of insurance? You should invest for him instead. You can keep adding to it on his future birthdays and continue in this fashion for the next 20 years.

Choose one good equity fund and invest a sum in it on an yearly basis. There is a virtual treasure trove of information on ValueResearchOnline.com.