Option Income Mutual Funds

However if you are a 10 or 20 slab investor you will pay a lower tax on growth options of mutual.

Option income mutual funds. Find the top rated options based mutual funds. Learn what are fixed income funds. One a lower tax rate. These funds can be made up of any asset class including equities and bonds.

The funds should have a dividend yield of at least 2 that is distributed to shareholders on a monthly basis. Hence if you are a 30 slab investor you will pay almost the same tax on growth and dividend options. Rushabh desai an amfi registered mutual fund distributor based in mumbai responds. A type of mutual fund with the goal to generate current income for its investors from the premium it earns by selling option contracts.

There are roughly 30 option income cefs get the list. Dividend old name renamed to income distribution cum capital withdrawal new name but since the dividend option in mf also comes in various. Understand how this smart investment option provides liquidity to your mutual fund investment at axis mf. On an inflation adjusted basis fixed deposits and other interest bearing assets were always a bad bet.

Every kind of logic points to this. Compare reviews and ratings on financial mutual funds from morningstar s p and others to help find the best financial mutual fund for you. The circular announcing the change link or download here. Sebi has directed all mutual funds and amcs to rename the dividend payout option in mutual funds schemes to payout of income distribution cum capital withdrawal option.

They run the gamut from funds that focus on the 30 stocks in the dow jones industrials to those that sell options on emerging markets stocks. In reality for deriving a regular living income specially for long periods as in retirement equity mutual funds or balanced funds are by far the best option. The profits investors earn on the. Considering her age and assuming that the mentioned amount of rs 40 lakh is her life savings a conservative approach towards investing is a must.

The first priority should be. Monthly dividend income monthly dividend income funds and etfs invest in income producing securities. In case of the growth option the short term capital gains on non equity funds including debt funds is paid as per the income tax slab rate.