It’s the last month for saving taxes for Financial year 2009-10 and also the season when most of ELSS (Tax Saving) Mutual Funds declare dividends. And if you are the one who have still not invested for tax savings, here is an opprtunity to invest less nad save more taxes. Read on to understand the complete strategy and how the news below would help you in the same.
SBI Magnum Taxgain (D) too has declared 40% dividend i.e. Rs 4 per unit and the record date is 5th March 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 5th March.
The dividend yield as on 2nd March NAV of Rs. 42.01 is around 9.5%.
As I have written in my previous posts to get tax benefit of Rs 1 Lac You need to invest around Rs. 91,500 if you choose Dividend Reinvestment option and Rs. 100,000 (in which you get back Rs. 9,500 within a month) if you choose Dividend Payout option on or before 5th March 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 2nd March (Rs. 42.01). The markets are volatile these days and investment amount would increase (in Dividend Reinvestment Option) as the NAV goes up (since the dividend yield decreases 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!
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