What Is The Mutual Fund Personal Finance
This Post Give Information For What Is The Mutual Fund In Personal Finance Your Life Mutual Fund Grow And Down ALso For Market Rate In Apply Also Give For Best Return By Long Term Condition Your Fund You can Also Manage Your Mutual Fund Payment
Where To Apply For Mutual Fund
Mutual Fund Apply For Your Demant Account Opening For Your Brocker Exe.For Share khan, Grow App, Upstock, ICIC Direct, ....... Etc
Now You Can Easily Manage For Your Mutual Fund Account Your PAYTM Account In Best Option This APP Also Secure And Best For You Can Start Invest For Mutual Fund For RS . 100 to .......
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Companies share their profits in dividends from time to time
If you want to invest for a long time, you can choose the option of growth
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If you are thinking of investing in a mutual fund, it is very important for you to know about this scheme in advance as, before investing in a scheme, you have to decide which option you want to avail from the scheme. Mutual funds offer investors two types of options. The first is growth and the second is dividend pay out. In the growth option the money stays in the scheme continuously, while in the dividend option the companies continue to benefit from time to time. Dividends can be availed once a year in the scheme with dividend option.
What is a Growth Option?
Selecting this option means that you will not receive dividends on your scheme. You will get this benefit only when you redeem your units. I.e. sell it. The advantage of this is that your investment in this option keeps growing.
Understand by example
For example, if you buy 1000 units of mutual funds at a NAV rate of Rs. 10 and you sell them at a NAV rate of Rs. 15 after 2 years, the return on the investment of Rs. That means you will get a benefit of Rs 5,000.
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Who should choose this option?
This option is suitable for long-term investors as it does not require frequent capital gains tax on returns. In addition, long-term returns are increased due to not withdrawing money in between when you choose the option of growth. This also gives investors the benefit of compounding. Therefore, this option is suitable for investors who do not want a regular return on their investments. Investors who want to get higher returns on money should opt for growth.
What is a dividend pay out option?
Mutual fund houses pay dividends to the investor in the dividend option periodically. It is up to the fund house to decide when and how much it benefits its shareholders.
For whom this is a good option
This option is good for investors who invest in mutual fund schemes for a short period of time. Apart from this it is good for those who have regular income. However, in this scheme the value of your money increases less as compared to the growth option. Because in this you don't get as much benefit of compounding as you get in the growth option.
When is the dividend received?
Dividends are paid when the company benefits and it wants to share its profits with its investors. It has no time or rule as to when and how much will be received. It depends on the company when and how much it benefits the shareholders.
Dividends have the option of re-invest
Investors in dividends also get the option to re-invest in dividends. It benefits investors with both growth and dividends. The amount of dividend does not go to the investors. Units are handed over to investors instead.
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