I have a 10 lac FD maturing on 25 June. I would like to invest this upon matuiry in 100% Debt Mutual Funds (Not in MIP where 0-20% is invested in equity). Planning to split in 3 categories of MFs.
One (20%) which I would invest for 3 Months.
Second (40%) for 6-9 Months.
And third (20%) for a little over one year.
Request you to please suggest whether to go for dividend option on Growth for each of the three categories.
From tax perspective, my understanding is, for investment period of less than 1 year Dividend Option is better. And for more than 1 year Growth Option is better.
I am in 20% tax bracket. I have an adequate emergency fund. I have recently (last month) started investing in equity MFs.
I would be investing through Fundsindia or through Hdfcfund.com if the suggested fund is from HDFC AMC.
Thanks
Ramprakash