Hi i am new to mutual Funds. I agree with you what you are saying that both of them(in ur example) will have same value after there is a Increase in 10% on NAV.But can you tell me this situation while investing we will go either for a Divident or a growth so in that case one who invested in new fund will get more returns than the other as that depends on the No of units one Holding.So can you please clear me on this.
Small calculation as per my knowledge please correct me if i am wrong. suppor Old fund declares a divident of 50% . A will get returns of 1250/-(250*5). and second Fund Declares return of only some 15% u say as it is new one (can be less thanthis also) 2nd one who invested in NFO will get a returns of 1500(1000*1.5).
