Is return on dividend mutual funds lower than growth funds?

[Bhuvan]

@ron94

In equity funds, company declaring dividend has to pay 17.65% ddt and then mutual fund has to pay 10% ddt. So over a 1yr period, wouldn’t returns of dividend mutual fund be much lower than growth funds?

Always go for growth. Check this post for more.

Why dividend option is the worst way to get mutual fund returns

Have seen a lot of people wanting opting for dividend when investing in mutual funds. This article by Dhirendra Kumar explains why it is maybe the worst way to get mutual fund returns. Mutual fund dividends need to die. They should be abolished and replaced by specially designed withdrawal plans that investors can choose according to their needs. That sounds like a radical suggestion but actually it’s not because financially, there is already no such thing as dividends in mutual funds. What are…