POSTED BY December 8, 2010 12:13 pm COMMENTS (8)ON
I have invested in some MFs in Dividend reinvestment option. Its current value is around 2 lakhs.
Since post-DTC, dividend is going to taxed at 5%, I want to switch to Growth option.
What are my options?
Since NAV of growth and dividend options are different, it’s like redemption of dividend option
and purchase in growth option.
Is it advisable to invest a lumpsum (which I will get after redemption) in today’s markets?
But I was thinking whether today’s situation (some amount invested in equity) will be the same as tomorrow’s situation (redemption proceeds invested as lumpsum in growth options) ???
In both cases, the amount is exposed to equity risks. In fact, if I redeem, will it be like profit booking?