Growth option and dividend option are generally the two investment options an investor gets while investing in a mutual funds scheme. In growth option, an investor does not receive any dividends from the scheme. The investor in growth option can book profits only by selling the units of the mutual fund scheme. While in dividend option, an investor gets a dividend on his investments in a mutual fund scheme, the value of the NAV declines by the amount of dividend paid per unit. The investor should select an option after considering the following points:
