What tax benefits does a mutual fund offer as a product?
Friday, June 9, 2017, 12:33 PM
When an investor buys and sells shares before completing one year, he has to pay short term capital gains. However, in a mutual fund the fund manager may keep transacting in shares at varying points of time. If investor remains invested for more than one year in an equity fund, his gains are tax free since securities transaction tax (STT) is already deducted.