Overview: Tata Digital Mutual fund is a high risk mutual fund with most of it's investment in information technology sector.
Suitability: Investors should be careful as this fund has a narrow investment mandate. Those who want to invest should invest via SIP and avoid lumpsum investment scheme.
Tax on earnings:
Capital gains
If the mutual fund units are sold after 1 year from the date of investment, gains upto Rs 1 lakh in a financial year are exempt from tax. Gains over Rs 1 lakh are taxed at the rate of 10%.
If the mutual fund units are sold within 1 year from the date of investment, entire amount of gain is taxed at the rate of 15%.
No tax is to be paid as long as you continue to hold the units.
Dividends Dividends are added to the income of the investors and taxed according to their respective tax slabs. Further, if an investor's dividend income exceeds Rs. 5,000 in a financial year, the fund house also deducts a TDS of 10% before distributing the dividend. In comparison to other mutual funds of the same category it's evident that Tata Digital Mutual fund has given better results over the last 5 years.
If the mutual fund units are sold within 1 year from the date of investment, entire amount of gain is taxed at the rate of 15%.
No tax is to be paid as long as you continue to hold the units.
Dividends Dividends are added to the income of the investors and taxed according to their respective tax slabs. Further, if an investor's dividend income exceeds Rs. 5,000 in a financial year, the fund house also deducts a TDS of 10% before distributing the dividend. In comparison to other mutual funds of the same category it's evident that Tata Digital Mutual fund has given better results over the last 5 years.
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