Mutual Fund - shifting from divident to Growth

[rckaushal]

Dear Sirs,

I have ICICI Prudential Infrastructure MF Dividend . I want to change it to Growth. If I change it today - will it be treated new investment for the purpose of capital gains [fund family is the same].

Actually, I had started dividend 2 yrs back when I was not aware of this dividend and growth fundas. Now I do not need moneys every year, that too ICICI takes more than one month to credit the dividend in my account. Rather I would like to redeem funds partly at more appropriate times as and when the NAV is high. Hence I want this freedom.

Thanks for the answers

Kaushal

 

[milind]

Dear Sirs,

I have ICICI Prudential Infrastructure MF Dividend . I want to change it to Growth. If I change it today - will it be treated new investment for the purpose of capital gains [fund family is the same].

Actually, I had started dividend 2 yrs back when I was not aware of this dividend and growth fundas. Now I do not need moneys every year, that too ICICI takes more than one month to credit the dividend in my account. Rather I would like to redeem funds partly at more appropriate times as and when the NAV is high. Hence I want this freedom.

Thanks for the answers

Kaushal

You have couple of options to chose from.
- You can change to growth option. It becomes a taxable transaction. But since you are holding for 2 years, large portion of this money should come under long term, free of any tax. You could leave dividend received in past 12 months still in div option
- You can change to div reinvest option instead of div payout. There will not be any tax impact of that

I am surprised that ICICI is taking so long to deposit the dividends. Usually (at least with amcs I deal with), it is within couple of business days.

-- Milind

 

[sagitta]

Hello.. I want invest in mutual fund. How easy is it to shift from one fund to another. Let us say from Equity to Debt, etc. I want to buy MF thru Sharekhan dot com.

Thanks.