What is the criteria for choosing growth or dividend reinvestment

Please note that choosing between the plans – Growth or Dividend Reinvestment - to get more returns, is a myth. You will get the same returns either you are investing in growth option or dividend reinvestment option. As you can see in this result https://www.advisorkhoj.com/mutual-funds... - Rs 100,000 invested in ICICI Prudential Value Discovery Fund on 16/08/2004 in both the options – growth and dividend reinvestment – the current value is Rs 12.15 Lakhs and Rs 12.63 Lakhs respectively. The growth option has given 22.53% annualised return whereas dividend reinvestment option has given 22.58% annualised returns.

Therefore, there is no criteria to choose between the two options as returns are almost same.

If you are looking for long term growth, then choosing between the growth option or dividend reinvestment is going to get you the same return. However, if you are looking for regular or periodic returns from your investments then dividend pay-out could be a good option.

Hope we could clarify your doubts.

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