In Sundaram Select Midcap Fund, should I choose the growth or the dividend reinvestment option?
Sundaram funds have given regular dividends. The portfolio for both the options is the same and dividends are exempt from tax. The reinvestment option will give you a regular income and the satisfaction of booking profits often. With the growth option, your money will grow over time, and if you sell your holdings within a year, you will have to pay 10 per cent capital gains tax. If you hold for more than a year, you don’t need to pay any tax on your gains from sale. The growth option’s NAV will be higher, indicating accumulation of gains. The dividend option’s NAV will be lower, indicating payout of gains. Manish Manik, email I have decided to invest Rs 2,000 each in systematic investment plans (SIPs) of HDFC Top 200, Franklin India Prima Plus, Reliance Vision and Sundaram Select Midcap for over 10 years. Have I selected the right funds? Your choice of funds is good with a balance of large- and small-cap funds. You need to track how the funds, particularly the mid-cap ones, are doing,
