Investment: Growth and dividend

Investing in mutual fund has two options:
1. Growth
2. Dividend

Growth mutual funds are the funds that invest in growing companies. Growth option is accumulating of SIP amounts till the investor decides to redeem the amount or withdraw in the form of SWP. In this growth fund investments, investors enjoy the benefits similar to compound interest.

Investors can choose for monthly, quarterly or yearly payout of dividends. The dividend payout is not fixed. Here investors enjoy the benefits of investing in the companies that declare dividends.

Investment: SIP, SWP, STP & Switch

We all know we can start a systematic investment plan (SIP) in mutual fund and shares where we invest a certain amount for a long period.

After accumulation of wealth, we have the option of systematic withdrawal plan (SWP) where we can plan our withdrawal of a certain amount monthly, quarterly or yearly.

When we near our retirement, we can transfer our accumulated wealth from a equity fund to a debt fund. Systematic transfer plan (STP)  is the process to transfer the money monthly, quarterly or yearly.

If we want to change from one fund to another,  we can switch it partially or wholly.