Mutual Fund - Bonus option vs Growth option

G

gabbar.singh

Member
#1
#1
Templeton India MMA fund doesn't have a growth option - just bonus and dividend. To avoid DDT, I prefer growth option.

Can anyone enlighten me if bonus option works the same same way as growth from the standpoint of income tax?
 
praveen taneja

praveen taneja

Well-Known Member
#2
#2
gabbar.singh said:
Templeton India MMA fund doesn't have a growth option - just bonus and dividend. To avoid DDT, I prefer growth option.

Can anyone enlighten me if bonus option works the same same way as growth from the standpoint of income tax?
Click to expand...
Bro as per I know Dividend is tax free for individual or retail investor:confused::confused:
But if growth option is not there u can go for dividend reinvest option:)
Both are same
 
V

vasa1

Active Member
#3
#3
praveen taneja said:
Bro as per I know Dividend is tax free for individual or retail investor:confused::confused:
But if growth option is not there u can go for dividend reinvest option:)
Both are same
Click to expand...
I think GS is right. In debt mutual funds, part of the dividend is paid as dividend distribution tax and only the balance is given to the investor. Therefore, in most cases, it is better to opt for growth and to book capital gains (with indexation) if you require money.

Depending on your individual situation, of course, you may choose one or the other.
 
G

gabbar.singh

Member
#4
#4
vasa1 said:
I think GS is right. In debt mutual funds, part of the dividend is paid as dividend distribution tax and only the balance is given to the investor. Therefore, in most cases, it is better to opt for growth and to book capital gains (with indexation) if you require money.

Depending on your individual situation, of course, you may choose one or the other.
Click to expand...
The question was if growth option is equivalent to bonus option from the tax standpoint.

Dividend option though free in hands of investor attracts DDT and is not efficient option for me.
 
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