WebNov 22, 2024 · The regular plan includes commission or brokerage paid out to the mutual fund distributor. The direct plan does not factor in such costs and the benefits are directly passed on to investors. Beginner investors need simple convenience services to facilitate the transactions. Even more than that, beginner investors need someone to get them … WebThat is because the dividend reinvestment attracts a tax of just 28.33% while capital gains on a growth plan will be taxed at the peak rate of 33% as short-term gain. Option 2: If your holding period is more than 3 years then you can get the concessional rate of tax of 10% without indexation or 20% with indexation on the growth fund.

Growth vs. IDCW Option – MF Street

WebThe only difference between direct plan and the regular plan is the expense ratio. Scheme characteristics such as investment objective, underlying portfolio, asset … WebJul 16, 2024 · The basic difference between a traditional and a Roth 401 (k) is when you pay the taxes. With a traditional 401 (k), you make contributions with pre-tax dollars, so you get a tax break up front, helping … uk high frequency words

Growth planning - Wikipedia

WebAnswer (1 of 3): Well to start with there are two wayd to invest in mutual fund. 1. Direct Plan:- NAV of such plans are bit on lower end as compared to regular plan. The basic difference between them is the reduction of “Middle-Man” expense such as commission and so on. Although be aware that by... WebThe difference lies in distribution of the scheme profits – If you have chosen growth option, the profits are re-invested in the scheme and reflects in the NAV of growth option of the scheme whereas in the dividend option (now known as IDCW), a portion of the profit may be distributed to the investors at the discretion of the fund manager/AMC ... WebIn growth option, profits made by the scheme are re-invested in the scheme instead of being paid out to investors. Since profits are re-invested in the scheme, you may earn profits on profit and thereby benefit from compounding. If you think, growth vs dividend, you should invest in growth option if you do not need regular cash-flows. thomas trieb stuttgart