Sir,
It is generally believed that investment in DIRECT scheme is better than REGULAR scheme.
However, in dividend option, in case the payout is same for both ( e.g. HDFC PRUDENCE has been paying Rs .30/unit for both options) will it be advantageous to invest in REGULAR (D) instead of DIRECT (D) as the cost per unit is less (Hence more units and more dividend). OR is there any other cost/ calculation involved?
Please advice
ANAND
1 Answers
Dear Anand,
Kindly note that rate of dividend payment is not guaranteed, it is purely a fund house decision to declare it or not, and also the quantum of rate across different schemes/plans.
When it comes to Growth plans, Direct option is surely better than Regular option.
Yes, the dividend rate in most of the Direct plans can be different (mostly lower) compared to their regular plans.
Kindly go through this article for a better understanding..
Article - 2
Please login or Register to submit your answer