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I am new to Stock Markets. I have interests to invest my savings on Mutual Funds. When I looking for Higher Return Mutual Fund securities, I have seen some information there. For Example, I am research about 'Invesco India Contra Fund - Direct Plan (G)' mutual fund in Moneycontrol website. When I am researching, I found some terms in there.

 Plan: Direct 
 Option: Growth 
 Type : Open-Ended 
 AMFI Code: 120348 

What does they mean Plan, Option and Type?
What are the other options of that Plan, Option and Type?
By that 'Option: Growth', How will it be benefited to me?
What is the difference between 'Growth and Dividend Reinvestment' options?

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What does they mean Plan, Option and Type?

They are different flavors of the same Mutual Fund with same underlying stocks. The price of the fund will change depending on the option.

Plan: Direct

Previously Mutual Funds were only available via Distributors, there was an entry load of 2.5% [commission paid to distributor on purchase]; which was subsequently regulated and is now around 1% exit load [commission paid to distributor on sale].

In order to be make it more beneficial to individual share holders who are not taking any advisory services or support can buy directly from Mutual Fund and get better return.

Option: Growth

The other options are, Dividend and Re-Invest Dividend.

Growth: Any dividends by the underlying stocks are not taken out of the Fund. But reinvested back by buying more stocks. Thus if someone doesn't want money back, the NAV grows because dividends are reinvested.

Dividend: Any dividends by underlying stocks are periodically distributed back to Fund holders. So if someone needs some money back periodically this option is helpful. The NAV will be less than Growth.

Re-Invest Dividend: During early 2000's Growth was not tax friendly; i.e. one had to pay taxes. However Dividends was tax free. There would be individuals who wanted growth, but would opt for Dividend and then re-invest the dividends. This was automated by Fund companies. However from 2004 to 2017; Growth and and dividends had similar tax benefits and hence didn't matter much. With new tax rules, it does make sense for Dividend Re-Invest if you don't need the money.

Type : Open-Ended

Open-Ended: This means that one can exit at any point in time. New investors can buy in at any point in time. This is the most popular option.

Close-Ended: Generally this means there are restrictions on when one can exit the fund. At times these are to meet regulations; for example ELSS Mutual Fund needs a lock-in for 3 years. At times these are for certain types of funds to curb volatility that benefits everyone. There are some close-ended funds that would have restriction on joining as well. i.e. people can buy only in certain period when the fund is open to buying.

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