InvestorQ : Do growth mutual funds give dividends during the investment period?
varsha Motwani made post

Do growth mutual funds give dividends during the investment period?

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Ira Shah answered.
2 months ago
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No, they do not. In a growth plan, the fund does not pay out anything to the investors by way of regular payouts or dividends. All the profits of the fund are reinvested in the fund and so your wealth compounds automatically.

A growth plan ensures that you can estimate returns more credibly and hence long-term wealth creation becomes more predictable. This makes growth plans more aligned with long-term financial planning. If you require dividends, you need to choose the dividend option of the mutual fund.

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