What is the difference between G and D in mutual funds?

They stand for Growth and Dividend plans respectively. Which one you go for depends on your situation:

  1. Long term growth – go for Growth Plan. Long Term Capital Gains in equity is 10% and in Debt Funds tax after indexation benefit is extremely low, making it better than FD.
  2. Need income flow – go for Dividend but be mindful of tax implication. Dividend Distribution Tax of 10% in Equity Funds and 28% in Debt Funds.

Go only for Direct Plans. Look for those words in the scheme you invest in.

Consult a SEBI Registered Advisor to ensure no bias in selection.

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