| Growth | Dividend |
|---|---|
| Allows you to stay invested and get the benefit of long-term growth of the portfolio | Allows you to book profits periodically |
| Profits are not ‘realized’, i.e., profits reflect in the rising price. You don’t see the profit cash until you sell the fund | Profits are realized periodically. |
| Profits generated by the fund remain in the market and give you the benefit of compounding over the years | |
| Number of units you buy remain the same, but the price (or NAV) goes up | Number of units remain the same, but the NAV reflects the booked profits. NAV of the growth option will be higher than the dividend option |