Switch

kitt

New Member
#1
Hi ... I have invested in the dividend plan and now would like to switch to the growth option. I would like to know if i go for switching, does my investment value reduce, I m aware that my units would change but does this reduce my value of investment and what tax implication this would have. If i sell my investment in 2 months after switching, am i entitled to pay tax ??
 
#2
When you switch you are buying units of growth option which have different NAV compared to Dividend option.So the number of units you will get will be different but your investment value will not change(except slight reduction due to STT). There are no exit loads on switches.Reg. tax implications I am not sure wheter switches are treated on par to Redemptions in computation of short term or long term capital gains. Can somebody throw light on this?
Narayanan
 

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