Mutual Fund Q&A, ELSS, STP, LTCG Arbitrage & Sector Funds
Date: 10-03-2018 Views: 785
In this video, we take up queries on arbitrage funds, ELSS, LTCG and sector funds
Edited highlights
0:26 In this video, we take up queries on arbitrage funds, ELSS, LTCG and sector funds
2:06 Sankz asks if an STP from an arbitrage fund will work better for a person in the highest tax slab than that from a debt fund
2:19 Arbitrage funds are treated as equity funds for tax purposes. The 10% Long Term Capital Gains (LTCG) Tax is applicable for investments older than 1 year
3:19 Pranay Dubey asks how ELSS returns are calculated and if they are calculated like PPF?
3:29 Mutual fund returns are calculated on the basis on the growth of NAV. This is unlike fixed income investments like PPF where interest keeps getting added to the principal every year
4:33 The maximum permissible investment limit under Section 80C remains the same at Rs 1.5 lakh after Budget 2018
7:10 Padmakumar Patil asks how ELSS is taxed. Is it yearly, after three years or on redemption?
7:21 As per tax regulation after Budget 2018, you pay 10% long term capital gains tax for ELSS investments older than a year
7:33 This is at the time of redemption in case of fresh investments made after January 31, 2018
7:56 Whenever you sell the units, that is when you become liable to pay tax. Remember, ELSS has a three year lock in period
8:53 Raghu Nandan asks for advice best pharma fund and wants out opinion on IDFC Tax Advantage
9:07 IDFC Tax Advantage Fund is fine fund due to its performance track record
9:11 Avoid investing in sector funds if you don't understand the sectors in which the investments is being made. A diversified equity fund is a much better choice
