Opprtunity to invest less and save more Taxes

Today Economic Times has a big advertisement of Sundaram BNP Paribas Taxsaver declaring dividend of 20% i.e. Rs 2 per unit.

The payout date is 29th January 2010.

As this is a good ELSS Fund and I have also recommended it in my previous posts. So people looking for Dividend Payout or Reinvestment option can invest in the fund before 29th January.

The dividend yield as on 22nd January NAV of Rs. 14.3045 is around 14%.

As I have written in my previous posts to get tax benifit of Rs 1 Lakh You need to invest around Rs. 88,000 if you choose Dividend Reinvestment option and Rs. 100,000 (in which you get  back Rs. 20,000 within a month) if you choose Dividend Payout option on or before 29th January 2010. (Click on links to see how you can save more by investing less by choosing different options)). The calculations are based on NAV of 22nd January (Rs. 14.3045). The markets are volatile these days and investment amount would increase (in Dividend Reinvestment Option) as the NAV goes up (since the dividend yield decreses with rising NAV) and vice versa.

You may also want to see "How to invest in Mutual Funds" if you are a first time investor or looking for different channels to invest.

HAPPY TAX SAVING!