Sources of Returns
Mutual fund investments have two primary sources of returns. The first is the capital gains on the sale of the investment, and the second is the dividend income. Capital gains are simply the profit made on the sale of an investment. It is the difference between the purchase price and the selling price of a mutual fund unit. For example, if Ms. Anindita invested Rs 5 lakhs in a mutual fund scheme on April 1, 2019 and sold it on March 31, 2020 for Rs 6 lakhs, she earned a capital gain of Rs 1 lakh.
Taxation on Capital Gains
The taxation of capital gains made on a mutual fund investment depends on the type of mutual fund scheme and the investment period. Depending on the holding period, there are two types of capital gains; short-term capital gain (STCG) and long-term capital gain (LTCG). However, the periods are defined differently for equity mutual funds and debt mutual funds. In the case of equity-oriented schemes, holding period of more than 12 months is long term and in all other cases holding period of more than 36 months is long term.
Taxation on Equity Funds
Bu hikaye Dalal Street Investment Journal dergisinin November 09, 2020 sayısından alınmıştır.
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Bu hikaye Dalal Street Investment Journal dergisinin November 09, 2020 sayısından alınmıştır.
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