I am invested in DHFL Pramerica - Low Duration Fund - Daily Dividend for a little over an year. It was a lumpsum investment done via a distributor. Here are my questions: * Last year I had some cash earmarked for a purchase which did not materialize, hence I parked/invested my money in this fund for quick access. Since I have postponed my purchase plans for another 1 year, is it advisable to remain invested in this fund for that duration or do I have other options in the same category? * Their support team mentioned that there is no exit load on this investment however, I wanted to know if I go ahead with the "Switch" option (Direct - Growth), is it better than the current option (Daily Dividend)? * Is there any tax liability on me if I go ahead with the Switch option, considering the switch option may/will consider it as a fresh investment and thereby any angle of short term gain (as it is just an year old investment)?
Growth plan will be better if you are falling in lower tax bracket (i.e. less than 30%). For higher tax bracket dividend pay out option can be beneficial.
If your investment horizon is one year then you can consider switching to their short term fund. DHFL Pramerica - Low Duration Fund is a ultra short term fund.
Switching from regular plan to direct plan will be considered as sale of units and taxed accordingly.
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