Mutual funds are encouraging investors to beat the budget blues by urging them to opt for regular withdrawal plans that offer a steady stream of income with a minimal tax burden, rather than plumping for dividend plans. The mutual funds industry is planning to launch an advertising campaign to educate investors that withdrawal plans offer higher post-tax returns than dividend plans at the end of the year.
According to industry circles, there is a misconception in the market that it does not make sense to earn short-term gains since they are taxed at the prevailing individual income tax rates. But, as Birla Sun Life officials put it, the advantage flows from the fact that while a large portion of withdrawals is capital
