Creative: I’m looking to invest in MFs. Please suggest what are the different types of plans & which one to choose?
Answer: It completely depends on the strategy of the concerned scheme, but broadly speaking, there are 3 different categories: one is a dividend plan that gives a regular payment of dividend to the investors. Another one is a re-investment plan where these dividend are reinvested in the scheme itself. One more kind is growth plan where no dividends are declared and the investor only gains through capital appreciation in the NAV of the fund. For you to buy for yourself, it completely depends on your investment objective, which are again dependent on your age, income, your risk taking capability and your financial expenses as well as tax status. It depends on your needs like, a retired government employee will definitely look for monthly income plan while a youngster like you can go for growth plan. Have more queries? Feel free to write to us.
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