News From Press How to reduce the impact of LTCG tax on your equity MF holding?

How to reduce the impact of LTCG tax on your equity MF holding?

Source: ET Feb 7, 2018

BSE Index has fallen by more than 1,000 points in last 3 days after Finance Minister's announcement of 10 per cent long term capital gain (LTCG) tax on equity and equity oriented mutual funds.

The tax is applicable only on long-term capital gain made on such investments beyond 31st Jan 2018. This means, for calculating capital gain tax, NAV of 31st Jan 2018 will be considered as the purchase price. This is what is termed as "grand-fathering" of the gains till 31 Jan 2018. ..

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1 Comment

S. M. Nagpal · 6 years ago `

The article assumes zero role of advisers. Who will tell the investor when to exit from a scheme. Advisers are managing emotions of investors especially during falling markets, most of the investors would have quit and many a times could not have entered in absence of advisers.
Instead, there are methods which switch from Equity and and re-entry Equity regularly. So the LTCG will be below exempted limit most of the times..
There is no substitute for Advisers.

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