InvestorQ : In Mutual fund, growth option or dividend re-investment is better & what if the stock declares the dividend & managed in the growth option of Mutual funds?
riya Ranade made post

In Mutual fund, growth option or dividend re-investment is better & what if the stock declares the dividend & managed in the growth option of Mutual funds?

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AR Kadam answered.
2 years ago
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In Mutual Fund, Growth option is better compared to Dividend re-investment as Dividend attract Dividend Distribution Tax (DDT). If any stock/company declares Dividend in the Mutual Fund portfolio with Growth option it will result in increase in NAV as the Total Asset Value of the Fund will increase to the extent of the Dividend received by the Fund holding that particular Stock in the portfolio
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K V RAO answered.
2 years ago
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Growth option is always better than Dividend option. Dividend option is suitable for those who seek liquidity from time to time.

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