- Instead of withdrawing money, transfer to another scheme and let it grow
- When the market is expensive, reduce exposure from equity to debt
Walter Bagehot once said,
“ The less money lying idle, the greater is the dividend. ”
And what better if this dividend can be further invested to make more money. Dividend Transfer Plan runs on this philosophy.
A DTP is a facility where the dividend declared in one mutual fund scheme is transferred as an investment to another scheme of the same mutual fund house.