Growth plans simply accumulate the dividend paid to them by the stocks they hold, by purchasing more stocks. As a result your money compounds for a longer time. This is an excellent option for long term investors.
In case you do cash out the dividend then you need to be aware of Dividend Distribution Tax which is 10% (+ cess etc) for Equity Mutual Funds and about 28% (including cess etc) for Dividend Mutual Funds.
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