The Growth option is a setting within a mutual fund where all the profits the fund earns — from dividends, interest, or capital gains — are automatically reinvested back into the fund rather than paid out to you in cash. This causes the fund's NAV to rise over time as those gains compound, and you only realise your total return when you eventually sell your units.
This option is generally preferred by investors who don't need regular income from their investment and want to maximise long-term compounding, since reinvested gains keep earning further returns. It also tends to be more tax-efficient than receiving periodic payouts, because you only pay tax when you actually redeem units, rather than each time a payout is made. Most long-term goal-based investors, such as those saving for retirement, choose the growth option.