Whats the difference between a Mutual Funds Growth Scheme and Dividend Reinvestment Scheme ? - whats the difference between dividend and apy
I saw that in the conversion of dividends, asset values falling dramatically after the declaration of the dividend .. is that as a loss for investors?
In most of the funds that I have seen the growth plans are increasing steadily, while far behind the systems of dividend .. Why?
Monday, February 15, 2010
Whats The Difference Between Dividend And Apy Whats The Difference Between A Mutual Funds Growth Scheme And Dividend Reinvestment Scheme ?
Subscribe to:
Post Comments (Atom)
4 comments:
NAV falls on dividend scheme is not really a loss, that the decline is due to a payment to the investor.
Re frequencies best investment can only work in the form of tax contribution. But it also depends on the frequency of dividend payments.
Growth option is best if the objective is to invest the fund and to grow.
The dividend is a good option if you need a source of income.
Reinvestment of dividends is not an intelligent solution (my opinion).
Growth Fund:
A diversified portfolio that has capital appreciation as its primary objective, with the payments of dividends, which have little or nothing. Portfolio consisting primarily of above-average income growth companies to reinvest their profits into expansion, acquisitions and / or research and development.
Most growth funds offer greater potential for appreciation, but usually at a higher risk than the average. Growth funds are more volatile than funds in the amount and nature of the merger. Companies in a portfolio of growth funds are in an expansion phase and should not be profitable. Investing in growth funds requires a willingness to take risks and an operational period of five to 10 years
The objective of the Fund is to provide growth capital appreciationmedium and long term. These systems typically spend most of his body in action. Growth schemes are suitable for investors who have a long-term research and development over time, ideally
Dividend is not paid as part of a growth strategy option and investors realized appreciation on investment (by increasing the NAV).
Dividend Payment Option
Dividends to the investors under the optional payment of the dividend. However, the NAV of the fund fell to the extent of dividends.
Dividend Re-investment option
Here, the dividends earned on the investment is automatically reinvested to purchase additional shares in open funds. In most cases, funds offer investors the opportunity to collectionsting reinvest dividends, or the same.
Retirement option
Some are available in connection with pension plans. Which are involved in those decisions for themselves, the participating companies for their employees.
Insurance Option
Some programs offer funds to provide insurance to investors as an additional benefit
Fund dividends or dividend option in a fund:
This is a fund that is earned in the dividend again ... There are other options to reinvest the dividends on such an opportunity to .. Payment to the fund is in turn invested in the fund resources (where more units) are purchased.
Yes .. Growth funds are always your best to connect the long term. Long-term investments are weighted toto achieve better performance (if we consider) the ups and downs of the market, the dividend option .. what happens is u choose to take the dividend ... BECAUSE NAV is reduced for capital appreciation and not be there.
Growth regulation is completely orientateded finance growth. Individ received as a reinvestment option for investors, regular dividends, or invested in the fund.
Well, let me like this:
In the growth regions regimes profits earned by the Fund are invested in the system. This makes the net asset value increased over time
The dividend option does not re-invest the profits from the fund from its investments. Instead, it allows investors from time to time. However, you can choose to reinvest the frequencies.
Consequently, the NAV of the growth option will always be greater than the dividend option because money is for the regime and not the investors back. ) If you are a long-term investment (atleast 6 months to 2 years, I suggest you go to plan on a growth path. I grwoth only invest in the plan.
Post a Comment