You have decided to invest in mutual funds. You have selected the best mutual funds for you. You have also decided whether you want to invest lump sum or through Systematic Investment Plans (SIPs) or STPs. There is one decision that you are yet to make. Which investment option to select? Growth or dividend or dividend re-investment? In this post, we will discuss the … [Read more...] about Mutual funds: Growth or dividend? What should you choose?
I came across a Whatsapp message recently that a prominent balanced fund was offering dividend of 1% per month. And those seeking monthly income could consider these funds. In January 2016, HDFC AMC fixed the frequency of dividend distribution for HDFC Prudence Fund to monthly i.e. dividend will be paid out every month. Quantum of dividend cannot be guaranteed … [Read more...] about Do not rely on Dividend from Equity or Balanced funds for regular income
If you give your friend Rs 10,000 and he returns you Rs 2,000, will you consider Rs 2,000 your profit? Of course not. Why? Because it is your money. He has merely given it back to you. If that’s the case, why should you treat dividend from a mutual fund in a different manner? In this post, I shall discuss some of the misconceptions investors have about mutual fund … [Read more...] about Mutual Fund Dividend is not Profit