Pl clarify the following Points:
1. The SEBI has instructed that the Dividends should be paid only if thee are
surplus funds.
2. If so the NAV should not go down to that extent.
3. If so there should be no difference in NAV of Growth and Dvd options.
4.Then we can do away with Dvd. option.
5.The scheme shld be treated as any other stock
KRSowmyanarayanan ARN-1789
Good one
ReplyDeleteIt is the opportunity for all the seniors to comment and clarify on this
The dividend payout is made from the surplus that has accrued. So when there is a payout of dividend is made, the NAV of dividend option will come down to that extent. But in Growth option the NAV is accumulated and never paid out. Therefore both the NAV's can never be the same (unless the dividend is never paid).
ReplyDeleteThis is obvious. Growth options are meant to save the surplus over a period whereas Dividend Payout Option is to reward the investors then and there.Most importantly, the yeild in respect of Growth scheme would be higher than that of Dividend Pay Out option, because, in growth option Dividend portion also earns surplus.
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