Readers' Corner: Mutual funds

Mutual funds are an excellent way to participate in the growth of the country and reap benefits

I am new to investing in mutual funds. Can you help me understand when investors should choose dividend option instead of growth in a mutual fund?

Mutual funds provide investors with two options, dividend and growth option.  Though they have different Net Asset Values (NAV), their investment objective, portfolio and investment style remain same. The reason for having two different options is to meet various requirements of the investors based on their goals. In case of equity mutual funds, it is advisable to invest in dividend option as the dividend received are tax-free and at the same time investor does not