The choice between the growth plan and the dividend plan for a retired person would depend on his or her financial needs
24-Jul-2015 •Research Desk
For retirement investments in a balanced fund, should I go for a dividend plan or a growth plan?
- Dr Rohini Neginhal
If you are investing for future retirement, it is best to go for the growth option. Dividend payouts may get spent or reinvested at low rates. If you are already retired, make the choice based on your financial needs. A balanced fund, given its equity component, cannot be relied on for monthly or annual income. But if you need periodic payouts from your investment, you can go for the dividend option.