investment options in india,Dividend option: Dividend option offers

To own the profit of stock market, it is better to invest in shares or to buy mutual fund units. Choose between dividend or growth options.
Selection of mutual fund is a challenge.  Give preference to equity, debt and balanced fund depending on the matters like our requirements and capacity to withstand ups and downs.  Before choosing an option, take some points in to consideration.  The points to be considered depend on the type of investment of the fund.
Dividend option: Dividend option offers the profits earned in the shares investment fund from time to time.  Dividend is declared on the face value of the share but not on Net Asset Value.  After dividend is declared Net Asset Value of the scheme decreases.
Dividend Reinvestment: Dividend is declared in this.  But is not paid to the Unit holders.  Additional units are allotted equal to the value dividend.  The NAV decreases in this option also correspondent to NAV.  The number of units in the account is increased.
Benefits

• Profits can be received from time to time.  There is no tax on the dividend.  There would be no need to sell the units for small needs.
• Equity market allows receiving profits with out greed.
• The profits in the form of dividends are received from time to time so the effect of ups and downs of market is not felt.
• If the dividend is deposited in the bank account there would be not much use.  They may pay an interest of 3^1/2%. The amount sh [...]