In this Q&A video, we discuss a viewer question on whether to choose the dividend or growth option in an ELSS investment.
Edited Highlights
0:25 While making an ELSS investment, which option should you choose? The growth option or the dividend option?
1:48 Opt for dividend option in mutual funds when you need regular income
1:59 In equity linked savings scheme, dividend option may not be a great idea
2:05 This is more so if you are young since you would want the fund to keep the money with itself and re-invest for growth
2:22 What you don't need is money coming away from the growing corpus of money of the fund
2:31 Ideally, opt for the growth option in ELSS. Ideally, opt for the growth option in other equity funds too
2:49 When you want regular income, dividends from equity funds is not a great choice
2:56 For regular income, opt for dividend option of debt funds
3:15 The risk of not receiving regular dividends in an equity fund is much higher than debt funds
3:52 The risk of not receiving regular dividends in an equity fund is much higher than debt funds
4:24 There could be exceptions when ELSS dividend option works for you
4:28 This is when you have a long retirement period left and you don't depend on the dividend for regular income
5:18 Dividend income from equity funds are tax free. So, is dividend income from debt funds
