As far as re-introducing long term capital gains tax (LTCG) on equity shares and equity mutual funds (MF) is concerned, the Budget 2018 will be remembered for long. Without going into the merits and demerit of the government’s LTCG tax move or its implication on long-term investing, let us delve into the mist it has created for retail investors. It has re-ignited the debate on whether mutual fund has lost its tax advantage to unit linked insurance plan (Ulip). Putting things in perspective, both of them can be used to save for long-term financial goals but the choice between the two will depend primarily on the investor’s profile and investing behaviour. Taxation is only one part of the whole story when it comes to choosing between two products. It’s an important deciding factor, but a tax advantage or a disadvantage shouldn’t be the pivotal point to decide on a savings vehicle.
Investing in internet funds? Factors to track before taking the plunge
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