8.17What is the growth option?
1What is it?
In the growth option, all profits stay invested in the fund. There are no payouts, so NAV keeps compounding.
2Why does it exist?
Best for long-term wealth building and usually more tax-efficient (tax only when you redeem).
3Quick revision
- Profits reinvested.
- Full compounding.
- Tax on redemption only.
4Knowledge check
Q1. Does a growth option pay you regularly?Show answer
No.
Q2. Why is it tax-efficient?Show answer
You pay tax only when you redeem.
Q3. Who should choose growth?Show answer
Long-term wealth builders.
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