Liquid Funds - Growth or Dividend

#1
Given the current tax laws, which is more tax efficient; growth or dividend re-investment option for Liquid funds?

I am in the highest tax bracket and want to park short term surplus in a good liquid fund like BSL Floating rate or IDFC Cash Plan.
 

milind

Active Member
#3
Also, what's a better fund to hold 6 months worth expenses for emergencies; Liquid Funds or Gilt Funds?
I use combination of liquid (e.g. Quantum liquid, HDFC Cash Management) and short term fund (e.g. HDFC/Reliance Short Term). Div-reinvest.

-- Milind
 

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