Which is Best for Long term like more then 10 years, Nifty 50 Index Mutual funds or ETF ,as per Dividends also.And any Name Suggestions,
If you have a demat account and active in investing, I would prefer buying Nifty 50 ETF instead of Index Mutual Fund. However please do read the pros and cons of investing in ETF especially with regard to liquidity. You also need to choose the AMC carefully.
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Direct equity, EQ MF… All these u can as per ur perspective for long term / short term. Based on ur goals
But does ETF gives dividend?,
ETFs may or may not give dividends. Even when the underlying stock has declared dividend, this does not mean that the ETF will also give your dividends.
ETFs generally do not give dividends but SBI Nifty 50 ETF due to certain compulsions were forced to declare dividend one or two years back (I am invested in SBI ETF). Experts are of the view that it is better ETF do not give out dividend as the dividend amount would be taxed at the hands of the investors. (if you cross the tax exemption limit).
So the million dollar question which I had was what happens to the dividends which the underlying company under the ETF… The answer is. There are 50 companies in Nifty 50 ETF. If 40 declares and pays out dividends. This amount will come to the ETF and this amount is then re-invested in the same 50 companies. This will have a positive impact on the NAV of the ETF.
By doing this investors get compounding effect. At the same time, if you need cash for personal use, then you could always sell a portion of the units and get cash. The sale will be treated as Capital Gain and if it is LTCG you get an exemption of upto 1 lack as well.
Disclaimer: This is what I understand, please do your own reading as well.
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