Growth investing or value investing which one is right for an investor. Growth at what price and when the company invested as a value pick will make it happen?
The dividend is not paid to the investor, often it is considered as equivalent to growth option but there is a difference. Let us understand each of the options and see what’s the difference between dividend re-invested option with growth option and which is a better choice for an investor.
Understand all the tax components aka LTCG, tax on dividend and DDT for investing in equities (stocks or equity mutual funds) for the longer-term and then see if growth is a better choice of investment over dividend option or not
The stock should pass my investment checklist and fundamental analysis before getting into these business checklists before I consider it for an investment.
When a mutual fund pays dividends, the net asset value of the fund reduces by the amount of dividend being paid out. So reduces the investment in the market.