Which type of mutual fund plan offers no cash payout and reinvests profits? Option: "Growth Plan", "Dividend Reinvestment Plan", "None of the above", "Dividend Payout Plan"

<< Back

Hi

Show Ans

i

Which type of mutual fund plan offers no cash payout and reinvests profits?

"Growth Plan"

"Dividend Reinvestment Plan"

"None of the above"

"Dividend Payout Plan"

<< Back

Hi

Show Ans

i

What is the recommended investment plan for long-term capital appreciation?

"Dividend Payout Plan"

"A combination of all three plans"

"Growth Plan"

"Dividend Reinvestment Plan"

<< Back

Hi

Show Ans

i

Which type of mutual fund pays dividends to investors?

"Systematic Withdrawal Plan"

"Growth Mutual Fund"

"Dividend Mutual Fund"

"Index Fund"

<< Back

Hi

Show Ans

i

What is a characteristic of the Dividend Payout plan?

"NAV remains unaffected by dividend payments."

"Dividends are credited to the investor's account."

"Profits are reinvested to buy more units."

"It is ideal for long-term capital growth."

<< Back

Hi

Show Ans

i

For investors seeking long-term capital appreciation, which mutual fund option is typically recommended?

A combination of dividend and growth options

Dividend option

Dividend reinvestment option

Growth option

<< Back

Hi

Show Ans

i

What is the primary difference between the growth and dividend reinvestment options in mutual funds?

The dividend reinvestment option is taxed differently than the growth option.

The dividend reinvestment option provides regular income.

The growth option reinvests dividends, while the dividend reinvestment option distributes them.

The growth option offers higher returns.