A number of mutual funds offer tax deductions under section 80(C) of the Income Tax Act. As of now, only a long-term capital gains tax (LTCG) is applicable at a rate of 10%, after the first year of investment. Disadvantages of Mutual Funds a. Costs Fund managers charge a commission...
financial planners. But there are various types of mutual funds, equity funds, debt funds, balanced funds, income funds, index funds etc. with several schemes equity has large cap,small cap, debt funds have short term, gilt. Availability of so many mutual fund categories and schemes in the...
Short-term capital gains (STCG) attract a tax of 15%, while long-term capital gains (LTCG) are taxable only if the gains exceed ₹1 lakh during the financial year. Long-term capital gains attract a tax of 10 percent on the amount exceeding ₹1 lakh. Related Read: How Mutual Fund ...
Long Term Capital Gain on an Equity/Hybrid/Balanced Mutual Fund During the Year Greater than Rs. 1 lakh – The investor puts in Rs. 10,00,000/- in the mutual fund and then redeems/sells it for Rs. 11,20,000/-, the capital gain would be Rs. 1,20,000/- and it will be taxed ...
The tax on mutual funds capital gains depends on the type of mutual fund scheme you are invested in and how long have you held the units of the scheme for. Based on this, let us understand the two factors in detail. First, let’s talk about the terms long-term capital gains (LTCG)...
Type of mutual fund scheme Tenure or holding period For income tax purposes in India, a short term holding period for debt funds is up to 36 months. The short-term period for equity funds is up to 12 months. Which means the long-term holding for debt funds is greater than...
The Fund is a sub-fund of Franklin Templeton Global Funds plc, an open-ended umbrella investment company constituted in Ireland. The Fund seeks to achieve long-term capital appreciation by investing at least 70% of its Net Asset Value in a diversified portfolio of equity securities issued by ...
Mutual funds have the ability to beat inflation over the long term, create capital, and deliver attractive returns on investments. It has greater exposure to the investment fund and a balanced risk-return ratio due to its investments in a variety of assets, sectors, and businesses. Mutual funds...
We then present a model of capital gains realizations in Section 3in which both fund managers and investors prefer early realization of some capital gains. The main idea captured by the model is that unrealized capital gains in a fund's portfolio increase expected future taxable distributions, ...
If the shares of one fund are exchanged for another, even within the same fund family, it is still treated as a sale. The gain on shares held for longer than 1 year is treated as a long-term capital gain or loss. If the shares were held for 6 months or less but the taxpayer ...