Growth vs Dividend Paying Mutual Funds: Which is Better?
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- Опубліковано 5 кві 2023
- Mutual fund schemes broadly give you two choices which are the Growth Plan and Dividend Plan. So, while the underlying portfolio of both the Dividend Plan and Growth Plan is exactly the same, the difference is in how the returns earned by the mutual fund scheme are used in both these plans. In the dividend option, profits made by the mutual fund schemes are paid out to you at certain intervals. SEBI changed the term “Dividend Option” in mutual funds to “IDCW” in April 2021. On the other hand, in the Growth Plan of a Mutual Fund scheme, the returns made by the mutual fund scheme get reinvested. As returns are reinvested, you may earn returns on return and thereby benefit from the Power of Compounding.
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The green color chart at 8:06 is wrong, only 100 units will be given as divident as present price is 25 rs hence 100*25= 2500 rs is given as divident,
Rest 400 units remains makes total 400*25= 10,000
Hence total remain same 10,000 + 2500
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Great video for growth vs dividend plan. It would be really helpful if you could help us understand the difference in growth vs dividend investment MFs in a similar way.
For Retired people or people who want Cashflow from investment, dividends can be useful. Dividends also psychologically help small investors to remain invested in a bear market.
Thanks sister for your describe.
Dahnyabadh mam mutual investment is the best way of earnings compounding 😊✌🏼👍
Very simply explanatied
Thanks mam ❤🎉
When do the growth mutual fund make profits?
How can i see if the scheme has made a profit and the profit is invested?
so i guess its more or like a swp plan but the only difference is that in case of swp the fund also grows and in case of idwc it doesnt grows. m i right or wrong please please clarify
Mutual funds sahi hai
Aur appka information bhi 😊
Kindly provide different between dividend reinvement and growth, also which is better
Very important information. Thank you sooo much
100000 invest kya, 5k devidend ke bad wo 95000 hogya, is trah to kuchh year bad pura invested capital hi khtm hojayega. To investment ka fayda kya hua?
Dividend reinvement and growth plan ki value me bda differences hoga in case of long time horizon me?
Nice
Explain is so good but speak slowly whit proper example 😊
Hi, thanks for the video. A small question. After IDCW payment do they adjust both NAV and number of units? Isn't it double adjustments? If the IDCW of Rs.5 /unit is paid and if customer hold the 500 units then 500*5 i.e. 2500 is the amount paid out to the customer. So the Investment Value post IDCW should be Pre IDCW Investment Value (12500) - IDCW amount (2500) = 10000. And the units should remain as is i.e. 500. If they are adjusting the units, then NAV should remain same i.e. 25 and not 20. As far as I know they don't adjust the number of units. Only NAV is adjusted. Please confirm.
This is correct. Video is slightly misleading according to me
Yes bro .. she is becoming extra cool here. Units will be added only. Stupid ass has done double adjustment.
So total units held is 500+125 = 625
625 x 20 = 12500
Moreover dividend mutual funds give fixed income even when markets are down..
Awesome
7500 se idcw bhadhataa hai usakaa kyaa nav se Matlab rahegaa jab dividend 5000 denek bad to nav 2rs se hi Kam honi chaahiye 23 per unit to 20 q ho gayi
Great....
Nicely explained
But how to track reinvestment in growth option of mf in their statement
Is this better than fds
After retirement the dividend plan is the best for regular income
Is it same in debt mutual fund
I think you should have discussed or explained IDCW payout re investment scheme which seems be better than growth and IDCW payout, isn't it? If not can you explain?
There is nothing better than growth. Not even idcw where the dividend is reinvested. Becoz the dividend the company announced is already cutout from your "growth" and then again reinvested. This is simply rework and nothing else. So better don't opt for idcw option..just go for growth option.
main icdw paln le liya but mujhe gowth fund change karna hai hoga
Me totally groww app close karna chahta he. All mutual fund withdraw karneke bad, groww app close karna pare ga? Koi demate account Nehi hai.
If actual investment reduces than it will become zero at some time, than no dividend, no our investment remains, this is your explanation?
किसी भी MF scheme का IDCW Rate Rs.? केसे पता लगाए ? कहां से जाने IDCW या Dividend Payout Rate Rs.?
Can anyone explain how compounding works in mutual funds??
It doesn't compound anything every year . It is just what you have invested over the years vs where you are currently as returns . Compounding is a very misleading term used by the market pandits to lure you to invest
Madam kuchh garbad hai apke calculation main, divident option main kuchh bhi profit nahi mila raha hai..aapne NAV bhi gira diyaa and units bhi.. bhai ke paise to total 10 k ke 10k hi rahee.. plz correct...
WHAT YOU ARE TELLING IS NOT ACCEPTABLE, MONEY KEPT IN EQUITY GROWTH OPTION AS WELL AS IN DIVIDEND OPTION DECREASED, NOT INCREASED EVEN IN GOOD MARKET POSITION ... THE PROBLEM REMAINED AS IT IS
Totally wrong
100000 invest kya, 5k devidend ke bad wo 95000 hogya, is trah to kuchh year bad pura invested capital hi khtm hojayega. To investment ka fayda kya hua?
Hona to ye chahiye na ki 1 lac pe 5k dividend mila to wo sidha account me aa gya , iss tarah investment same hi 1lac bach jayegi aur dividend account me aa jayega, iss tarah NAV kam ho jayegi aur Units same hi rhegi,,
Complete wrong explanation. Nav and units are both been reduced which is not the case
Reinvest ho ya na ho, dividends par poora tax lagta hai. Issliye paisa pada rehne do mutual fund me. Aage jab nikaloge toh bahut kam tax lagega.
Wrong.! Total NAV’s held never reduce, the value of the NAV’s might drop.
My father used to take dividends in his mutual fund investments. Now he says that growth option is much better and advised me to continue with growth. The dividends are taxed at 30%, highest of your income while redeeming or withdrawl of funds are just taxed at 10%, that too when it exceeds 1 lakh in a year.
Completely WRONG EXPLANATION to say that Units REDUCE AFTER DIVIDEND PAYOUT.. What ACTUALLY REDUCES is the NAV after Dividend Payout but UNITS Purchased REMAIN THE SAME..You SHOULD BE ASHAMED OF YOURSELF FOR DELIBERATELY MISGUIDING Viewers just because GROWW does not deal in IDCW schemes.
She is telling the same thing !! See Table at 4.54 (4 mins, 54 sec)
@@orangeyo5863Please see her chart from 7.15 in thr vdo..She contradicts what she says in the first part of the same vdo..While it is true in IDCW Plan (Dividend payout) the Net Asset Value (NAV) reduces after dividend payout, what she says from 7.15 in the vfo is completely FALSE..UNITS DO NOT REDUCE..NOR ARE THEY ADDED at the time of Dividend payout..Only the NAV of the UNITS PURCHASED increases or decreases..
yes
She has never said that number of units be reduced, she said that NAV will reduce. I hope you understand .
@@tbanerjee18look at the chart from 7.15 in the vdo and her explanation from 7.47 in the vdo..She says " units issued against Dividend.." There is no concept of units issued against Dividend..Units remain the same..all that reduces after Dividend payout is the NAV..In the example chart she has provided from 7.15, she is showing units issued against Dividend in Column 8, which is wrong abd coresspondingly column 9 Total units Held "after units ussues" reduced to 375 which is totally WRONG!!
Thank you mai bach gaya apki video se didi
Bhai itna complicated video aj Tak nhi dekha😂
Highly unprofessional....do dont misguided by pulling onfo a clearly wrong calculation
Divide the nahi capital widraw karate hai par dividend widraw karate nav same honi chaahia market k hisaab se ye yedaa bandage public ka paisa free me vaapar k khaa Rahe Hai unit ka bhav bad Haa aa uname hath me hai aur ghataanaa bhi
Compounding ko hindi me kya kehte hai
Koi bata sakta hai 😅😊
Chakravriddhi byaj
जब आपकी इनकम , पृथ्वी के ग्रैविटी को छोड़कर, क्षितिज में विलीन हो जाति हे,😅
@@ajaysemwalblogs5103Aaj agar aapki salary lakh rupay hai toh definitely 20 saal baad 8-10 lakh ho hi jayegi. Issliye investments jo aap aaj kar rahe ho wo aapke salary se jyada tezi se bhagega. Aaj 30 hazar invest karoge toh 20 saal me 20 guna jarur hoga. Yani 6 lakh.
मुझे finance का ज्यादा knowledge नही है पर मैं 100% sure हूं कि dividend option explanation wrong है.. आप knowledge improve करो तब बक बक करो
मुझे Groww app me अपना दूसरा gmail id बदलने में problem हो रही है? मैं अपना gmail id or password भूल गया हूं।
और मैं नया Gmail or password add करना चाहता हूं।sir please 🙏 help me
Mujhe lga mutual fund 1 yr me jitna earn karega wo hi as a dividend dega
Not explained in proper way
Completely misleading. Remove this video soon to safeguard further investors. Units will not be reduced after declaring a dividend. It's NAV which decreases.
Iss tarah to NAV bhi kam ho rha aur Units bhi kam ho rhi😂😂 ghata ho rha bc 😅
@@neutrino_purane mutual funds ke investors se salah liya karo. Isse ye hoga ki unhone jo galti kari tum usko nhi dohraoge.
It’s the epitome of misleading
Wrong explanation
5 rs nav minus hoyeya and 125 unit v minus hogaye???👏👏👏😂😅
100000 invest kya, 5k devidend ke bad wo 95000 hogya, is trah to kuchh year bad pura invested capital hi khtm hojayega. To investment ka fayda kya hua?
@@mdathar5259wo chhodo, dividends par full tax lagega income ke upar se. Phir kya faayda reh jayega. Sab kuchh sarkar ke paas chala jayega. Issliye growth option better hai. Reinvest karte raho aur compounded growth paao.
Hindi to hindi bolo english to english bolo. adha hindi adha english
Iska kya proof hai ki growth mf dividend reinvest karti hai??
Isme thodi transperency lekar aao aap log.
Mam etf investments me compounding hota h kya pls reply on my coments.... Pls iska ek vdo banaiye