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Changing from dividend to growth

Switching from dividend to growth plan involves a redemption from the existing scheme and a fresh purchase in the desired plan

How to change from dividend payout option to growth option?
- Inderpal

Switching from dividend to growth plan (or vice-versa) involves a redemption from the existing scheme and a fresh purchase in the desired plan. This is because the growth and dividend plans have different NAVs. Dividend plans have a lower NAV than growth plans as they pay out the gains while growth plans re-invest the same.

This article was originally published on November 09, 2015.

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