An annual mutual fund ritual
1 month, 3 weeks ago

An annual mutual fund ritual

The Hindu  

Previously, in this column, we discussed the cost of switching from a regular plan to a direct plan for your mutual fund investments. If you choose the IDCW option, you must find avenues to reinvest the cash flows received from the MF. Therefore, if cash flows from IDCW continue to be taxed at your marginal tax rate, the growth option is tax efficient. Conclusion Under the current tax laws, the direct plan growth option of an equity fund is optimal for goal-based investments. You must typically rebalance your mutual fund investments annually to reduce the risk of losing unrealised gains.

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History of this topic

Mutual Fund SIP: How Will Budget 2024 Impact Tax Calculations on Capital Gains?
7 months, 3 weeks ago

Mutual Fund SIP: How Will Budget 2024 Impact Tax Calculations on Capital Gains?

News 18  

The Union Budget 2024-25 increased taxes on short-term capital gains and long-term capital gains for equity-oriented funds. The budget, announced on July 23, raises the STCG tax on equity mutual funds to 20% from the previous 15%, while the LTCG tax has increased to 12.5% from 10%. Equity mutual funds remain a popular choice for Indian investors seeking exposure to …

Budget expectations from individual taxpayers, investors
1 year, 2 months ago

Budget expectations from individual taxpayers, investors

New Indian Express  

“The other demands are to make pensions tax-free in the hands of annuitants. Level-playing field between mutual funds and Ulips: At present, capital gains made from Unit-linked Insurance Plans are tax-free if the annual premium is less than R2.5 lakh. MF industry has been demanding a level playing field between Ulips and equity mutual funds as far as tax on …

Dividend vs SWP: How do you like your MF payout served?
2 years, 9 months ago

Dividend vs SWP: How do you like your MF payout served?

Live Mint  

The purpose of investing in a mutual fund scheme, on the other hand, is determined by the investor's financial objectives. If you want a consistent return on your MF investment, whether it's a short-term or long-term investment, you have two options: the dividend distribution option or the systematic withdrawal plan option. Systematic Withdrawal Plan Investors can redeem their mutual fund …

Mutual fund 'dividend' is a misnomer. And tax-inefficient, too
3 years, 8 months ago

Mutual fund 'dividend' is a misnomer. And tax-inefficient, too

Live Mint  

While investing in mutual funds, a question that comes up often is whether to invest in the "dividend" option or the "growth" option. The growth option of investing in mutual funds is where the profit made by the scheme’s portfolio is automatically reinvested into the scheme and the investor’s investment simply grows in value. “Those resident individuals, whose taxable income, …

MF dividends now taxable at 10%
7 years, 1 month ago

MF dividends now taxable at 10%

The Hindu  

The government has proposed a 10% tax on dividends doled out by equity-oriented mutual funds as part of its overall levy of taxes on equity investments that also saw the finance minister re-introduce long term capital gains tax. ‘Will impact fund flow’ “This move may impact flows into funds where investors were primarily entering with the expectation of regular dividends,” …

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