Hi,
I have invested 40K in SBI Magnum Tax Gain in Nov, 2007 with DIVIDEND-reinvest option. After that I started(from April 2008) investing 5K in the same fund through SIP for tax saving of financial year-2009. As we know, ELSS fund have 3 yrs lock-in period. Its dividend-reinvested component will also have 3 years lock-in period. Hence this process will go infinite time. Am I right? Fund has declared 11 Rs/unit dividend once in January-2008.
If I am right, what should I do to make my step correct? Can we convert dividend-reinvest option to growth option? Or is it possible to pull out all the money before 3 years and start investing freshly through SIP? What are other good ELSS funds?
Waiting for your response.
-Thanks & Regards
Ashutosh T.
I have invested 40K in SBI Magnum Tax Gain in Nov, 2007 with DIVIDEND-reinvest option. After that I started(from April 2008) investing 5K in the same fund through SIP for tax saving of financial year-2009. As we know, ELSS fund have 3 yrs lock-in period. Its dividend-reinvested component will also have 3 years lock-in period. Hence this process will go infinite time. Am I right? Fund has declared 11 Rs/unit dividend once in January-2008.
If I am right, what should I do to make my step correct? Can we convert dividend-reinvest option to growth option? Or is it possible to pull out all the money before 3 years and start investing freshly through SIP? What are other good ELSS funds?
Waiting for your response.
-Thanks & Regards
Ashutosh T.