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Mutual Funds

Mutual funds are professionally managed fund, which pools investment from several investors to invest in capital assets. We have tied up with all AMC’s across India. We diversify portfolio in all asset class be it equity, debt or money market. We assist you in creating your personalized portfolio, keeping in mind your risk appetite, tenure for investment and availability of funds.

A mutual fund is an investment vehicle wherein an asset management company professionally manages a pool of funds mobilized by numerous investors. The fund manager diversifies their investments in various securities depending on the investment objective of the particular scheme.

We suggest our investors’ equity, debt & hybrid products looking at their goal for investment, and suiting to their risk appetite, investment horizon, and return expectations through lumpsum SIP & STP models. We bring 12 years of rich industry experience, cross- functional team of experts and a strong legacy to build significant value for our clients.

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Benefits of investing in Mutual Funds

  • Money management that is proficient: There is a better probability of making a profit with mutual funds since they are supervised by a fund manager. Fund managers are supported by an in-house staff of analysts and professionals who conduct a study and then choose the best-performing assets for the fund’s portfolio.
  • Regular investment options that allow you to invest modest sums on a regular basis: The SIP approach is one of the most important benefits of investing in mutual funds since it allows you to spread out your contributions over time. As little as Rs 100 a month may be invested via a SIP. This eliminates the need to save up a large chunk of money before beginning your investing career.
  • Diversification: It’s a good idea to invest in mutual funds to diversify your portfolio. Every mutual fund makes investments in various assets, giving investors the advantage of accessibility to a diverse portfolio of investments.
  • Can be redeemed whenever you like: The vast majority of mutual fund plans are open-ended, giving complete flexibility regarding when to redeem your mutual fund units. This guarantees that investors get the benefits of flexibility and hassle-free withdrawals, regardless of the market conditions.
  • Properly governed: SEBI formulates policies, regulates and supervises mutual funds to protect the interest of the investors.
  • Tax-efficient: Save taxes by investing in tax-saving mutual funds or equity-linked savings schemes (ELSS) under Section 80C of the Income Tax Act of 1961. These mutual funds allow a standard deduction of up to Rs 1,50,000 per year, which may result in tax savings of up to Rs 46,800 per year.

Taxation on Mutual Funds:

All mutual fund dividends received will be taxable as per your tax slab. At the same time, if your dividend income is more than Rs.5,000 in a financial year, then there will be a TDS @ 10%. Different mutual fund investments and holding periods have different rates of capital gains taxes.

  • Taxation of equity funds: It is possible to make short-term financial gains by selling a portion of your mutual fund holdings within one year of their acquisition date. The 15% tax rate on these profits applies to everyone. After a year of owning your equity fund units, you are entitled to long-term capital gains. Tax exemption is granted on long-term capital gains (LTCG) of up to Rs 1 lakh each year. Any LTCG beyond Rs 1 lakh per year is taxed at a fixed rate of 10%, with no indexation advantage.
  • Taxation of debt funds: Short-term capital gains are those realised on the sale of debt fund units after a three-year holding period. Taxes are levied on these gains based on your income tax bracket. After a three-year holding period, you may sell your debt fund units and realise long-term capital gains. Taxes are imposed at a fixed rate of 20% after adjusting for inflation.
  • Taxation of balanced funds: A balanced fund’s equity exposure determines how much of a gain is taxed when sold. To be taxed as an equity fund, a balanced fund’s equity allocation must be more than 65%. Unless otherwise stated, the rules for debt fund taxes apply.