What is a difference between growth option and re investment option in mutual fund ? which is profitable?

growth option is always better and more profitable. there are no taxes to be paid at all if u redeem your funds after one year ( 366 days or plus from the date of purchase given in the MF statment ). In reivestment option the dividends decalred are reinvested by mf co, but the mf coi pays tax on the dividends so ur outgo is less. pls go in for straight growh option and keep the money invested for at least one year to get fully tax free returns

both same as profit base. but you get yearly divident in account and avoid more taxes if you select divident re investment option. but in groth option you will pay more taxes when you redeem it

growth option- you will get your dividned on investment
reinvestment option- the dividend declared will be added to
your principle amount so that your investment value goes up

Growth And Dividend Option.

Growth Option : Say you invested Rs 10 a Mutual Fund. That initial investment has now grown to Rs 14. Then Rs 4 is the available increase(growth) in your investments as on that date.

Other option for an investor to select is Dividend: This option is for a relatively conservative investor, who I risk averse and wants a stream of income from his investment rather than a lump sum amount.

Dividend Option has 2 sub-variants:

Dividend Payout: When the scheme declares a Dividend the investor is paid an dividend based on the Face Value of the scheme. The dividend is credited to the investors bank account or investor receives a cheque of the dividend amount.

Dividend Reinvestment: When the scheme declares a Dividend, under reinvestment sub-option the dividend amount is used to purchase additional unit in the same or different scheme.

Here the difference is that instead of investor receiving money in his account, the same is used to purchase additional units of his preferred scheme.

There are two option in which the customer receives the dividend : A ) Reinvest b ) Growth

Reinvest is wherein the customer while applying for the scheme can opt for this particular option in case if he does not want the dividend in his bank account but instead of that he wants the units in his account. The units will be credited in customers MF portfolio only if he his eligible for dividend.

- Growth is wherin the customer will receive the dividend only in the bank account.