Mumbai: It’s raining dividends at mutual fund houses.Asset management companies are doling out liberal dividends in the equity mutual fund schemes before the new tax rules making dividends less lucrative commence on April 1. The finance minister, in the Union Budget , announced a 10 per cent dividend distribution tax for mutual funds from April 1, 2018. As per the current tax laws, dividend on equityoriented mutual funds is tax free.DSP Blackrock Equity Fund has declared a dividend of Rs 16. Reliance Mutual Fund and Essel Mutual Fund among others are likely to announce dividends later this month where yields will be upwards of 15 per cent per annum.“Payouts for the quarter is not yet decided. The investor earns Rs 5 as tax-free dividend, and post the dividend payment, the NAV drops to Rs 25.

Source: Economic Times March 09, 2018 02:13 UTC