POSTED BY May 1, 2012 8:42 am COMMENTS (16)ON
I have a liquid fund with option “Dividend Reinvestment” — now my question is — am I just losing money here without any gains? The dividend that is reinvested is subject to DDT
I’m in 30% tax bracket. But if I sell off my holdings within 1 year I’ll have to pay short term capital gains tax.
So my question is are there any advantages at all in this “Dividend Reinvestment” option over growth at any point of time? (Meaning time of investing, redeeming, after 1 year, before 1 year etc). I simply don’t see the value in this
Thanks in advance,