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Liquid Fund Dividend Options

The option is immaterial as the returns do not differ

Do the returns under the daily, weekly or monthly dividend options in liquid funds differ? Which option should I choose if I want to invest in a dividend reinvestment option?

- Murthy

The returns under different dividend frequencies do not differ as the underlying portfolio is always the same. Whatever the return, it is same for all. The point of difference is that while in one, dividends will be distributed more frequently than the other.

Moreover, all the dividends distributed under liquid plus schemes are subject to dividend distribution tax (DDT) of 28.33 per cent. It will not matter which dividend frequency you choose.

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