Which Mutual Fund better? Growth or Devident ?

Indian context please

Dividend - typically a more mature company who's growth has slowed down AND instead of all/most their revenues on developing new products or making acquisitions - they return some of this cash to the shareholders as a dividend. Besides investing in dividend paying funds to receive current income - these funds are more conservative and would not go up as much in 'bull' markets OR down in 'bear' markets than funds that pay no dividends.

Growth - on the other hand these funds would use their available revenue/funds to try to get bigger with the expectations that as they grow their earnings will also grow. In the markets - this anticipation of growth-growth potential can give a company an expanded p/e AND with that have the companies stock price go up. These are riskier investments that would outperform a dividend paying fund in a 'bull' market BUT underperform in a 'bear' market. Besides actual market risk - there is also disappointment risk - for instance a stock goes up on a perception of growth BUT doesn't grow as much OR a company intends to grow by acquisition but a company they buy doesn't do well.

The above are some general thoughts about the fund types - as far as which is better is going to be relative to your own conditions and what you are trying to get from your investments. Do keep in mind you don't have to put all your money in one or the other - you can allocate between both types and get some portfolio diversity which is a good idea.

it depends what kind of returns r u looking for. people who want regular income they choose dividend option and other who are interested in better NAV returns choose growth. according to me dividend option is always advisable because u get some refund of ur investment in between the investment period.

The first responder gave you a concise answer of their differences. There are certain times when either is better than the other. Currently, in the U S, growth funds have done very poorly for the past 6 years, because six years ago growth stocks were way over valued. Dividend funds outperformed them by a wide margin. Currently, I believe the situation is getting ready to change. Growth stocks are currently selling at very reasonable PE, nearly in line with dividend stocks, or perhaps at just a small premium. So perhaps in the next few years, growth stocks will outperform dividend paying stocks. At least they should unless there is a sever economic downturn.

In India, stocks in general are selling at a much higher PE than in the U S. There is risk of a market correction as there was in May. Growth stocks such as Infosys and Wipro will be subject to deep corrections in value, especially if there is an economic downturn in the U S. Whereas Mahanagar will not. On the other hand over the long term, 10 years, you should expect a better return from growth stocks in general than dividend paying stocks.