What is the difference between dividend and growth options in mutual funds?
Under the dividend option, a mutual fund may distribute a portion of its earnings to eligible investors whenever distributions are declared. Under the growth option, earnings generally remain invested within the scheme, allowing the investment to grow over time through compounding. The selection depends on whether an investor prefers periodic income or long-term capital appreciation.
Core Principle: What is the difference between dividend and growth options in mutual funds?
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