InvestorQ : What does it mean when reports say that HNIs can buy dividend yield funds rather than stocks?
Ria Jain made post

What does it mean when reports say that HNIs can buy dividend yield funds rather than stocks?

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Neelam Naik answered.
1 year ago
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This is a new arbitrage opportunity that has come up for HNIs. Many of them get large dividends and may end up paying 43.5% tax on dividend income. This can be avoided by shifting to the growth plan of a Dividend Yield fund. You just pay LTCG tax at 10%.

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