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Mutual Funds - Long Term Capital Gains Tax?


Is it better to invest in the "GROWTH" or the "DIVIDEND RE-INVESTMENT" option in a equity mutual fund; from purely a taxation standpoint?

while investing always aim for long term, and by opting dividend reinvestment mode you will be having more number of units in you name and there by more chances of dividends etc., in future., btw dividends are exempt from income tax
Purely taxation point of view.

Dividend is tax free in your hand.

( Dividend some time give you big liquidity)

long term capital gain tax is also now nil.

( going high time long term is sometime risky. ) what about the chances of erosion of money?) Just observe recent scenerio.

Many mutual funds have lost their NAV atleat by 30 to 40% - what if you took the chances of dividend

Think all pros and cons. - Never think only from one point of view.
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