Sorry Mr.Prasant.I don't agree with ur view.In case of dividend you get Tax free cash.For example from NFO U purchased 1000 units @Rs10/- each=10,000/ .Now a dividend declared is say 100% I.E. 10,000/- this you can use on ur day 2 day expenditure.-Yes it is true, after post dividend ,the fund NAV is reduced by a maximum of 15%.Where as in case of growth option say pre dividend NAV is 40/-& declared dividend is 100% then ur a/c credit will be 10000/40=250.Now just after post dividend NAV become 34/- & if u invest the received dividend Rs 10,000/- @34/- with entry load say 2.5%, amount for purchase is Rs9,750/- & units to be credited to the a/c is 286 which will be more than growth option. I think I am able to explain.
