Dividend Transfer Plan (D T P)
Dividend Transfer Plan (DTP) is a unique facility wherein a unit holder can opt to automatically invest/transfer the dividend declared by the Source Scheme into an another scheme which is referred as Target Scheme.
Dividend from source scheme is transferred on the immediate next business day after the record date at the applicable NAV of the target scheme. Accordingly equivalent units will be allotted in the target scheme.
To know the list of eligible schemes, please check Source Schemes and Target Schemes
Why is Dividend Transfer strategy beneficial?
Transfer of Dividends from Fixed Income / Liquid Schemes to Equity / Balanced Scheme
Dividend declared, if any, in Fixed Income / Liquid Schemes may be invested (transferred) in schemes having exposure to equities. Hence, while the principal amount is invested in fixed income schemes, the regular and small exposure to equities may be beneficial.
Transfer of Dividends from Equity/Balanced Schemes to Fixed Income / Liquid Schemes
Dividends declared, if any, by equity schemes may be invested (transferred) to fixed income schemes instead of investing in fixed deposits or lying idle in savings bank account.
Enrolment
To enroll for DTP, a specific form needs to be submitted, duly filled and signed.
DTP enrolment will be registered by within seven business days of a valid request received at registrar head office in Chennai. Any dividend declared between the time of form submission at investor service centre and registration of DTP by the registrar will not be transferred to the target scheme and existing dividend sub option applicable to the units of the scheme will be applied.
Once the request for DTP is registered, then it shall remain in force unless it is terminated by a specific cancellation request in the designated form.
Enrolment in DTP facility automatically overrides any previous instructions of Dividend Payout or Reinvestment facility in the source scheme(s).
Minimum Dividend Amount to Transfer
The minimum amount of dividend eligible to be transferred under Dividend Transfer Plan is Rs. 500/- (Rupees Five Hundred Only).
If the dividend in the source scheme is less than Rs. 500/- the dividend will be automatically reinvested in the source scheme.
Load Structure applicable to Dividend amount invested in Target Scheme:
Entry Load – Nil; Exit Load – Nil
Cancellation
Investors can opt out of DTP enrolment at any time by sending a written notice to the registrar in a designated DTP Cancellation Form. DTP enrolment will be cancelled within seven business days of a valid request received at registrar’s head office in Chennai.
At the time of discontinuation of DTP facility, the unit holders should indicate their choice of option i.e. dividend reinvestment or dividend payout. In the event the Unitholder does not indicate his choice of dividend option, the dividend, if any, will be reinvested in the Source Scheme.
Important Disclaimer:
It should be specifically noted that dividend declaration is neither guaranteed nor is assured. Actual distribution of dividends and the frequency of distribution are provisional and will be entirely at the discretion of the Trustees. There is no assurance or guarantee as to the rate of dividend distribution nor that dividends will be regularly paid, though it is the intention of the Schemes to make a dividend distribution under the respective plan/options of the Schemes. Please read the detailed Terms and Conditions of dividend transfer plan before applying for enrolment in this facility.