Dividend Speed Unchanged, Switchings Find Few Takers

Mutual funds (MFs) have not yet reduced the frequency of their payouts despite the imposition of the dividend tax in the Union Budget for 2002-03.

Investors are also not rushing to switch from dividend plans to growth plans to avoid the tax incidence.

Analysts said the switch from dividend to growth plans is not happening because such a move (between schemes or plans) is tantamount to a redemption from the original plan and fresh investment in another