1. What happens to the NAV when a fund pays out a dividend?

2. Prabodh has invested in a fund since last one year. The fund is posting good returns, however, he has not earned any dividend. Which of the following is NOT likely to be true?

3. Which of the following is "NOT" a source of income for an investor in a mutual fund?

Growth or dividend: which option should you choose?

mutual funds: income and dividend

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Mutual funds allow investors to choose between the dividend and growth option, but dividends and capital gains are taxed differently in the hands of the investor. Watch this video to understand why the choice between the two options should be based on investor needs, type of fund and tax considerations.

AUTHOR(s):Uma Shashikant

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Growth and dividend options, mutual fund investing, mutual fund taxation

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