It is always good to see first time investors planning their investment choices carefully. Both dividend and growth options have their place in mutual fund investment and it all depends on one's investment overview. For example any investment made undergrowth option mean that the number of net Asset value or NAV remains constant and any rise in NAV value of the mutual funds gives the investor capital appreciation.
In case you are looking for a regular income from your investment then opting for a dividend plan is better as it repays a part of the investment each year. What's more, the dividend paid out by mutual fund companies is tax free in the hands of the investor. If you are planning for a long term investment, I would suggest growth option is a preferred choice.