Latest News
-
Multibagger Energy Stock To Reward Shareholders With 3 Bonus Shares, Hits 52-Week High -
Massive Rs 33/Sh Dividend By Larsen's IT Stock, 1650% Payout Soon; LTTS Earns Profit Of Rs 341 Crore In Q4 -
Rs 7.50/Share Dividend: Adani Group Cement Company Reports Strong Q4 Results; Profit Surges 2x YoY -
Closing Bell: Market Rebounds To End With Gains For 5th Straight Day; Sensex & Nifty Soar Led By Banks -
Gold Prices Ayodhya: In Ram-Janma-Bhumi, 24carat Falls By Rs 380 In 10-Grams, Drops By Rs 3,800 In 100-gram -
Penny Stock Hits 2nd Upper Circuit After Declaring Earnings, Gains 14% In 1-Week -
Rs 8.50/Share Dividend Recommended: Nestle India Reports 27% YoY Jump In Profit -
0.50% Dividend Yield: Midcap Cement Stock Slumps 10% Following Weak Q4 Results; Profit Down 48% YoY -
1:10 Split, Rs 147/Share Dividend: FMCG Major Likely To Report Profit Growth; Buy Or Sell? -
Mark Zuckerberg's Meta Reports Record Q1 Profit Surge, Projects AI Investments This Year; Stock Slumps
Can you switch from growth option to dividend option in a Mutual Fund?
Mutual fund provide two types of options to investors at the time of making an application. One is the dividend option and the other is the growth option.
At times your own need would have changed and you may want to opt for dividend to meet your monthly expenditure, while at other times you may want the money to grow to meet a future need.
You can opt for changing the scheme or switching from the growth option to dividend option or vice versa in a mutual fund scheme.
However, one needs to remember that the net asset value of the schemes will most certainly be different. For example, the net asset value under the growth scheme would almost certainly be higher than the dividend scheme.
Also, one must remember that the codes are different. In any case, what you need to do is fill the form containing the switchover request to facilitate the transfer from one option to another.
What will be the implication?
The only implication will be with regards to the tax liability. In fact. the difference between the growth and dividend option with regards to a mutual fund scheme is the tax treatment. For example,if you opt for the dividend option you must remember that the dividend income is tax free. On the other hand under the growth scheme one would attract a capital gains tax.
There are many investors who are today moving from the growth option to the dividend option to reduce their tax liability. This is sensible if you are already paying taxes.
GoodReturns.in
