Dhirendra Kumar explains which fund is better for a systematic withdrawal plan
28-Mar-2022
Are equity saving funds better than arbitrage funds for a systematic withdrawal plan and taxation?
- Chhanda Basu Mullick
Suppose this is a substantial amount meant for the long term, and you will depend on the income generated and withdraw some amount periodically. In that case, investing in an equity savings fund will be a better option because it will optimise your returns. Arbitrage funds will get you returns, just like any liquid fund.
However, if this money is to be invested in a fund to stagger your investment in an equity fund, you can invest in an arbitrage or liquid fund.
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