Dividend reinvestment is better only for people in 30% tax bracket and investment duration of less than 3 years. For all others Growth option is the right option<\/strong> (More details in another post\u2026).<\/p>\nAs you can see the tax computation of dividend reinvestment is complicated, so if you want to keep your life simple choose growth option.<\/p>\n","protected":false},"excerpt":{"rendered":"
Arbitrage mutual funds are good investment option for short term, especially for someone\u00a0in higher tax bracket. The reason being their pre-tax return is comparable to the\u00a0bank fixed deposits but is tax free if invested for more than 1 year and taxed at 15.45% if redeemed before 1 year of investment. interest on FDs are taxed […]<\/p>\n","protected":false},"author":1,"featured_media":8622,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[3013,4],"tags":[3006,3007,3005,745],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/04\/Arbitrage-Fund-Growth-or-Dividend-Option-\u2013-Which-is-Better.png",1026,551,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/04\/Arbitrage-Fund-Growth-or-Dividend-Option-\u2013-Which-is-Better-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/04\/Arbitrage-Fund-Growth-or-Dividend-Option-\u2013-Which-is-Better-300x161.png",300,161,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/04\/Arbitrage-Fund-Growth-or-Dividend-Option-\u2013-Which-is-Better-768x412.png",768,412,true],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/04\/Arbitrage-Fund-Growth-or-Dividend-Option-\u2013-Which-is-Better-1024x550.png",1024,550,true],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/04\/Arbitrage-Fund-Growth-or-Dividend-Option-\u2013-Which-is-Better.png",1026,551,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/04\/Arbitrage-Fund-Growth-or-Dividend-Option-\u2013-Which-is-Better.png",1026,551,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/04\/Arbitrage-Fund-Growth-or-Dividend-Option-\u2013-Which-is-Better.png",120,64,false]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":4,"uagb_excerpt":"Arbitrage mutual funds are good investment option for short term, especially for someone\u00a0in higher tax bracket. The reason being their pre-tax return is comparable to the\u00a0bank fixed deposits but is tax free if invested for more than 1 year and taxed at 15.45% if redeemed before 1 year of investment. interest on FDs are taxed…","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/6984"}],"collection":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/comments?post=6984"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/6984\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/8622"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=6984"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=6984"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=6984"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}