FAQs

Mutual Funds give returns in two ways - Capital Appreciation or Dividend Distribution.

Capital Appreciation:

An increase in the value of the units of the fund is known as capital appreciation. As the value of securities in the fund increases, the fund's unit price also increases. An investor can make a profit by selling the units at a price higher than the price at which he bought the units.

Dividend Distribution:

The fund distributes the profits earned in the form of dividends. The dividend is distributed either on a reinvestment basis or on a payout basis.