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G stands for Growth

D stands for Dividend

Let us say there are two funds each with NAV Rs. 10. Assuming both collect a corpus of Rs. 10 lakhs and invest in the stock markets. At the end of the year, both funds made a decent profits and their corpus stands at Rs. 15 lakhs each.

Fund A declares a dividend of Rs. 4 per unit and hence people who invested in it get some money. The NAV falls to Rs. 11 and the corpus falls to Rs. 11 lakhs. This is called a dividend and this fund A is a 'D' fund

Fund B does not declare any dividend and continues to invest the Rs. 15 lakhs. This is a 'G' fund. Only when you want your money, you will get it. Until then, the money would remain with the fund house

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16y ago

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