What is direct dividend?

What is a direct dividend?

In a dividend payout scenario, dividend distributions made by the mutual fund are paid out directly to the shareholder. If the shareholder chooses this option, dividends are usually swept directly into a cash account, transferred electronically into a bank account, or sent out by check.

What is the difference between direct dividend and regular dividend?

Why the difference? The difference in dividend payout is not a ploy by fund houses to make direct plans less attractive. In fact, direct plans are supposed to give investors better returns than regular plans as the fund saves on the commission payable to the distributor.

What is direct growth and direct dividend?

Essentially, the difference is quite simple. In a growth plan, the fund does not payout anything to the investors by way of regular payouts. … On the other hand, the dividend plan pays dividends out of profits earned and income generated.

Which is better direct growth or direct dividend?

The NAV of growth option will always be higher than the dividend option because the profits re-invested in the growth option may grow in value over time. The total returns of growth option are usually higher than dividend option over sufficiently long investment horizon due to compounding effect.

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Is it better to buy stock directly from a company?

A big advantage of buying stock directly from a company versus a broker is that it’s cheap. According to Bankrate.com, brokers typically charge anywhere from $8 to $45 per transaction. … There is sometimes a one-time set-up fee and the charges for selling shares are usually higher.

What is G and D in mutual fund?

Every mutual fund scheme comes in two types of plans – growth and dividend. The growth option gives returns in the form of rising values of mutual fund units. Whereas, under the dividend option returns are paid via periodic dividends.

Which is better direct or regular mutual fund?

Since ERs of regular plans are higher than those of direct plans, the direct plan NAV will be higher than the regular plans. Simply put, the value of your investment after you buy units will always be higher in a direct plan compared to a regular plan of the same scheme.

What is Blue Chip Fund?

Blue chip funds are equity mutual funds that invest in stocks of companies with large market capitalisation. These are well-established companies with a track record of performance over some time. … Blue Chip is commonly used as a synonym for large cap funds.

What is NAV in mutual fund?

In simple words, the Net Asset Value or NAV is the mutual fund scheme’s total value minus the liabilities for every outstanding unit.

Which is best mutual fund?


Scheme Name Plan Category Name
SBI Large & Midcap Fund – Direct Plan – Growth Direct Plan Large & Mid Cap Fund
Large Cap Fund
Canara Robeco Bluechip Equity Fund – Direct Plan – Growth Direct Plan Large Cap Fund
Franklin India Bluechip Fund – Direct – Growth Direct Plan Large Cap Fund
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