Key Fea­tures

Consumer Voice - - Bfsi -

This fund is pop­u­lar as it is the only fund that pays div­i­dend on a ‘daily’ ba­sis in ad­di­tion to weekly, fort­nightly, and monthly op­tions. This suits busi­ness­men/traders who sud­denly find that they have a cash sur­plus, which gen­er­ally hap­pens due to for­eign ex­change fluc­tu­a­tion, es­pe­cially in ex­port trans­ac­tions, and/or ad­di­tional prof­its due to a ‘spiral’ in the cost of the prod­uct in the mar­ket. The ones who de­sire to park their sur­plus monies in a safe fund for a short-term pe­riod can choose the daily, weekly, or monthly div­i­dend plans. It is eas­ily cash­able. One gets the cash within a cou­ple of days of no­tice. It en­joys in­come tax ben­e­fits. Be­sides, the tax is de­ducted at the fund com­pa­nies’ end – the in­di­vid­ual need not bother about cal­cu­lat­ing and pay­ing. It is con­sid­ered to be a low- to av­er­age-risk fund as there is no lock-in pe­riod. This fund does not have any en­try/exit load. So, in­di­vid­ual in­vestors need not weigh this op­tion

while choos­ing the ‘ideal’ fund.

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