Switch from Dividend to Growth of same fund

POSTED BY Anand ON January 7, 2011 12:10 pm ONE COMMENT

Hi,

I am having some investment in ICICI Pru Dynamic Plan – Dividend option. As from 1-Apr-2012, dividend is going to be taxed at 5%, I want to switch to Growth option of the same fund.

Does it make sense to switch at one go or should I switch systematically (through STP)?

I know that STP from liquid fund to equity fund is recommended and it works.

How about STP from equity to equity?

Please advise.

 

Thanks

Anand

One reply on this article “Switch from Dividend to Growth of same fund”

  1. MoneySavingsHelp says:
    January 18, 2011 at 11:36 am

    For same equity fund, there is no question of STP. STP is for 2 different funds and not for 2 different options of same scheme. In either way, you profit or loss remains the same whether you opt for dividend option at one go or over a period of time.

    Hope it will help you.
    InvestmentKit.com

    Reply

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