MIP… Advantages of the tax | Which type of MIP has to be chosen?

May 26th, 2010| Uncategorized.

MIP… Advantages of the tax | Which type of MIP has to be chosen?

MIP… Advantages of the tax:

As these are the debt mutual funds, the DDT that is known as the dividend distribution tax of 12.867 has to be paid. After the tax is paid, the dividend is given to the investor. Therefore, there will be no interest on the income that is gained. In case if the units are sold before a year, some amount of tax is charged. The profit has to be shown in the total income and then the tax is to be paid based on the slabs that are observed. The tax that is to be paid on the income that is gained is calculated based on the GDP.

Which type of MIP has to be chosen?

There may get a doubt on the section where the income is taken and though it is said to be the monthly income plan, all types of the options are there in this plan. After observing all these kinds of options, it is better to choose the growth option or to reinvest the dividend. In case if you feel there is necessity of the money, it is better to choose three-year dividend. When compared to the other dividend options, this had a benefit to the fund investor and there is a chance to gain more income through these investments, because to pay the dividends every month the cash is to be kept with us forever.

When?

-          Even though if you feel that if you have a good income, the debt option can be chosen in another for and can be used.

-          The present history and the past history of the dividend are to be known before choosing the MIP to invest the amount.