POSTED BY January 23, 2013 10:13 am COMMENTS (4)ON
Reliance money manager fund is listed under ultra short term funds but its bench mark index is liquid fund index. Is it treated as an ultra short term fund or liquid fund for dividend distribution tax purposes? Does a liquid fund always has the word liquid in its name?
Context for the question: I have 4,5 FMPS maturing over next 1.5 year starting this month. I want to use STP to invest in equity funds as a part of balancing my portfolio. So I want to invest in ultra short term – dividend plan funds and implement STP. Just want to make sure that I am not using a liquid fund due to higher dividend distribution tax. I want to invest in dividend option to make sure that there are not many short term gains as the STP will be over in an year and I am in 30% tax bracket.