Fund Basics

A Myriad of Options

Do different investment options offered by mutual funds leave you puzzled? Understanding this would help you make better choices when you go shopping for a fund. After all, these options have a specific purpose and tax implications.

Once an investor has made up her mind to invest in mutual funds a journey of sometimes slightly confusing proportions starts. Where should one invest in? The growth option or the dividend option. Should one opt for a bonus plan or chose a systematic investment plan. We take a look at all these different options and why you should chose one option over the other. Each of these and other options available aims to provide certain benefits or advantages. The growth option provides you an option to keep money invested over the course of your stay with the fund. While this may seem pretty straightforward there can be complications here. If the market rises over a period of time and then falls and if you do not book the gains, much of your profits could be lost. In thi

This article was originally published on March 05, 2003.


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