Dividened reinvestment Vs Growth

What is the difference between a dividend reinvestment option and growth option wrt. a Mutual fund investment?

For equity funds,
As per the current tax policies, both option would be the same for investors. Dividend from equity funds are tax free and hence the whole amount gets re-invested. No entry load is also charged on the re-investment amount . So , both the options would yield you similar returns as per the current tax policies.

FMP better than FDs?

For debt funds,
Dividends from debt funds are subject to a dividend distribution tax. So, only the dividend minus tax gets re-invested. So, it's better to opt for growth option in debt funds.

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