Convert Growth to Dividend

[Robbie2008]

Hi All,

Have invested in SBI Magnum Taxgain (Growth) which comes under the 80c scheme which requires a minimum 3 years lock in period.

Would it be possible for me to convert to SBI Magnum Taxgain (Dividend) scheme within the 3 year period ? In case it convertible will there be a new 3 year lock-in period?

I'd like to avail the dividend payouts hence the query.

On the contrary, is it advisable to convert at all?

 

[yodlee99]

I am not too sure about this in a ELSS. But, in general, be aware that government charges a dividend distribution tax ~ 13% from the MF house before it reaches your hand.

 

[milind]

Transfer from growth to dividend option will involve a Sell followed by Purchase transaction. So it will violate any Lock-in.

Dividend tax is not charged on Equity funds, not sure if Tax Gain falls in that category.

I am not too sure about this in a ELSS. But, in general, be aware that government charges a dividend distribution tax ~ 13% from the MF house before it reaches your hand.