NAV staying above Rs. 10/- per se is not a 'Healthy Look'. Take a case where the NAV was at Rs. 12.95 an year ago and the same is at Rs. 10.95 today! The person who has bought the Units at the time of IPO at the face Value and also seen some 'rich' dividends at regular intervals for 3 or 4 years should be in a poition to decide when to withdraw or re enter!
After all investments are made for returns and safety.
Hi, I tried SIP through ICICIdirect, but there I came to know that every purchase is considered fresh purchase, so one ends up paying entry load for every purchase. That's why it's better to directly go to the AMC and buy SIP from them. I am not sure about all other MFs, but I bought SIP for Reliance MF through ICICIdirect & enquired about HDFC MF.
When a fund provides an investor two options: growth and dividend, they are explicitly asking the investor to make a choice. If I choose the dividend option, I am saying that I want to keep my investment level limited, and want to get my earnings in smaller pieces, but in a number of installments. When a fund porivdes a dividend option, I think it is their duty to declare dividends once every while. ( Obviously qualified by the fact that they can do so only if the fund situation makes it sensible to declare a dividend.
I have an example of FT Prima fund, wherein I had invested some money in May 2003. From that date, the value has grown to 2.4 of the investment, in the dividend option. And it has grown more or less regularly. It last paid a small dividend in Oct 2004, and nothing since then. The fund value has grown enough for it to declare a dividend, and 6 months is a long time. Why present a dividend option, if you are not going to give them in the hands of the investors ?
At least two other funds I'm invested in - Reliance Vision, and HDFC Prudence - announce dividends that are more regular and more substantial.
