Can there is facility to swift from Dividend Reinvestment plan option to Growth. Can any one pl. illustrate an example of Dividend Reinvestment and Growth for lock in period of 3 years
RE:Dividend reinvestment to growth
by vasanth raja on Apr 08, 2007 02:30 PM Permalink
In ELSS funds it's not possible because there is a lock in for 3 years after that u can switch.But in other open ended fund it's possible.In this case,it'll be considered that exit from one plan and changed to other plan in the same scheme.hence for Equity Oriented open ended fund,it'll attract a Security Transaction tax (0.25%) from the exiting fund(Dividend Reinvestment option) and an entry load of Growth Fund(2.25%) is also applicable.
