Before I started investing with Zerodha Coin, I had invested in a few mutual funds through a distributor and recently I noticed them as regular plans with “Dividend Reinvestment” option rather than “Growth” option. When I asked him, he said it’s the same as the dividend is being reinvested back.
I am now curious to know if this is true or if there is still any subtle difference between the two options. If Dividend Reinvestment = Growth then why are these being sold under two different name?
With the introduction of 10% DDT (Dividend Distribution Tax) for equity-oriented mutual funds in the Union Budget, now will there be any difference in Dividend Reinvestment option and Growth option?
Please throw some light on it.