What are Growth and Dividend Options?

Growth Option: Under this, the pay-out is made only at the time of redemption of units. Such schemes do not yield any short term income as all the money invested continues to be invested and hence your wealth compounds until redeemed.

Dividend Option: Under this, the pay-out to the investors are made from time to time, in addition to the pay-out at the time of redemption. These interim payments are known as dividends. The scheme NAV falls each time a dividend is paid out.