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Pioneer ITI Introduces Bonus Option


India's first private sector Mutual Fund, Pioneer ITI has introduced a bonus plan under all its Debt schemes namely, Income Builder Account (IBA), Monthly Income Plan (MIP), Gilt Fund, Short-term Income Plan and Treasury Management Account (TMA). This is in addition to the existing Growth and Dividend Plans in all these schemes.

Since the dividends from mutual funds are taxed at the recipient's end, bonus option is an investor friendly measure wherein the distributable profits of the fund are capitalized in the form of bonus units. The plan is ideal for investors having a time frame of less than one year and looking for tax-efficient returns.