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Which are the best MIP or hybrid funds for transferring dividends to equity funds

I am 39, single, want to invest 10L rupees in the MIP or Hybrid fund and monthly dividend want to re-invest in the equity funds. Kindly suggest good funds or alternate solution for the investment?

Sep 3, 2016 by Bhushan Khatu,   |   Mutual Fund

For investing in MIP or Debt oriented hybrid mutual funds you may refer to the following link –

Top performing hybrid debt oriented funds

However, reinvesting the dividends received from these funds to equity funds may not be a good idea as the AMC has to pay dividend distribution tax @ 28.84% on the dividends declared by these schemes. Therefore, doing STP makes more sense as you will only be paying the short term capital gains when you transfer any amount from these funds to equity funds.

Why STP is a good idea? Please read this - https://www.advisorkhoj.com/company...

We would also request you to read this article https://www.advisorkhoj.com/company... Even though the article is on SWP, the tax calculation is same as that of STP. The only difference between STP and SWP is that – in STP you are parking the investment in a fund and transferring a fixed amount or the capital appreciation to another fund, say equity fund. However, in case of SWP, you withdraw a fixed amount or the appreciation and do not transfer to any fund. Therefore, reading this article will make you more aware the taxation part.

Please also read this https://www.advisorkhoj.com/post-your...

Finally, you should try our STP calculator and check how it works? You can select a hybrid fund of an AMC and then choose an equity fund from the same AMC house and see how it works https://www.advisorkhoj.com/mutual-funds...

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