How do growth plans in mutual funds work?
Growth plans in mutual funds primarily focus on capital appreciation. Unlike dividend plans, they do not distribute the earned income or profits as dividends to investors. Instead, the income is reinvested, leading to an increase in the Net Asset Value (NAV) of the fund. These plans suit investors with a long-term investment horizon who seek wealth accumulation.
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How do Dividend Plans in mutual funds function?
Dividend Plans in mutual funds periodically distribute the income or profits generated by the fund to its investors. Instead of reinvesting the earnings, these plans provide cash payouts to unit holders, allowing them to benefit from the scheme's ...
What are dividend reinvestment plan entail in mutual funds?
A Dividend Reinvestment Plan in mutual funds provides investors with an alternative to receiving dividends in cash. Instead of getting a cash payout, the dividends are reinvested to purchase more units of the fund. This can lead to compounded growth ...
What are balanced/hybrid funds in mutual funds?
Balanced or Hybrid Funds aim to strike a balance between growth and income. They invest in both equity and fixed-income securities, trying to capture the growth potential of equities while also offering the stability of fixed-income instruments. As a ...
What are closed-ended funds/schemes in mutual funds?
Closed-Ended Funds or Schemes are specific types of mutual fund schemes that are available for subscription only during a designated timeframe, often referred to as the New Fund Offer (NFO) period. They come with a predetermined maturity date, ...
Is exit load a standard charge across all mutual funds?
No, the imposition of Exit Load varies from one mutual fund scheme to another. While some schemes might charge it, others may not. It's vital for investors to thoroughly read the scheme's offer document to understand any applicable charges. For ...