Growth option: In growth option, the investor does not get any income in between the tenor of the fund. He only gets the lumpsum amount earned as return on maturity.
Dividend option: In dividend option, the investor is entitled to capital gains but along with it also gets dividend as and when it is announced by the company. This option also gives income tax benefit.
For example: if an investor invests Rs 1 lakh in ELSS fund with dividend option and he gets Rs 30,000 as dividend, then his effective investment will be Rs 70,000 but he will get tax benefit on the entire amount that is Rs 1 lakh.
Some of the best tax saver ELSS schemes
•HDFC Tax Saver
•Sundaram BNP Paribas Tax Saver
•Franklin India Tax Shield
•ICICI Prudential Tax Plan
•Magnum Tax Gain
•HDFC Tax Advantage
•Canara Robeco Equity Tax Saver
•Religare Tax Plan
•ING Tax Savings