The gain arising from mutual funds are taxable as Capital Gain Tax. The tax rates vary basis the holding period of the investor (Short Term or Long Term). Gain from sale of equity-oriented mutual fund units held over 1 year are considered as Long Term Capital Gains. The gainsexceeding ₹ 1.25 lakh in a financial
Yes. Investment done in Equity Linked Savings Scheme (ELSS) funds qualify for tax deductions up to ₹1.5 lakh under Section 80C of Income Tax Act. ELSS funds are equity-oriented mutual funds with a 3-year lock-in period. This benefit is applicable if you choose the old tax regime only.
The Total Expense Ratio is the annual fee charged by the mutual fund scheme for managing a mutual fund scheme. The TER covers all the expenses the mutual fund incurs such as transaction costs, investment management fees, registrar fees, custodian fees, audit fees, distributor commission, sales & marketing, administrative expenses etc. TER is calculated as
Net Asset Value (NAV) is the per-unit price of a mutual fund scheme. It’s calculated as: NAV = (Total Market Value of Assets – Liabilities) ÷ Total Number of Units Outstanding In the above formula, assets include the market value of all investments held by the mutual fund scheme, while liabilities are expenses, management fees
Yes, you can take a loan against mutual fund units. Many banks and NBFCs offer loans against mutual fund holdings, typically up to 50-80% of the fund’s market value. This is a secured loan where your mutual fund units are pledged as collateral. The interest rate varies based on the lender and the type of
Yes, you can withdraw your money from most mutual funds anytime. However, some mutual fund schemes, like ELSS funds (Tax Saver Funds), have a lock-in period. For equity mutual funds, it generally takes 3 business days to process the withdrawal, while debt funds may take up to 1-2 business days. However, withdrawing before a specified
Mutual funds are considered safer than individual stocks, as they provide diversification by investing in a range of securities. However, the safety of a mutual fund scheme depends on the category of fund you choose. Debt funds that invest in bonds are relatively safer but offer lower returns, while hybrid funds are moderate risk and
ETFs (Exchange Traded Funds) and mutual funds both help in long-term wealth creation, but they serve different investor needs. ETFs are passively managed, often tracking an index (Nifty 50, Sensex etc.), and usually come with lower expense ratios. However, they require a Demat account and are bought/sold like stocks. Not all ETFs have option to
Flexicap funds invest across large, mid, and small-cap stocks, allowing the fund manager to adjust allocations based on market conditions based on his expertise and discretion. This flexibility can offer diversified exposure across market cap within a single fund, potentially balancing growth opportunities and risk. In contrast, Large, Mid, or Small Cap funds focus on
Both Multicap and Flexicap funds are types of equity mutual funds that invest across large, mid, and small-cap stocks, but they differ mainly in how they allocate their investments: · Multicap funds must invest at least 75% of their assets in equities, with a mandatory minimum of 25% each in large-cap, mid-cap, and small-cap stocks
