InvestorQ : Can I still put the dividend stripping strategy to work in the current market conditions?
indhumathi Sayani made post

Can I still put the dividend stripping strategy to work in the current market conditions?

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Abhisha Yadav answered.
2 years ago
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Of course, it is still possible by legitimately estimating the likely dividend date range, although it is quite impractical and the benefits are also not to the same level. Typically, funds tend to declare their dividends around a certain period and hence it is possible to approximately estimate their record dates and invest 3-4 months prior to that. It is a very legitimate and simple way of reducing your tax liability, although it will involve locking in your funds for a short period of time. Hence the opportunity cost of these funds vis-a-vis the tax benefits will have to be evaluated before taking a dividend stripping decision. However, after the change in regulation, the attractiveness of dividend stripping has substantially gone down.

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