How to invest in direct plans of mutual funds

I am new to Mutual funds and have been learning useful information from your website. I have 50k in my savings account and want to invest in Debt funds for 2.5 years. I have a doubt. How much tax will I have to pay on returns in the case of debt funds. Also I want to go for direct investment rather than by mediator. Please provide the information on procedural aspects for direct investment of debt funds, and Tax amounts on final returns?

Mar 27, 2017 by Bokam Rajasekhar, Chennai | Mutual Fund

Thanks for the kind words about our website which we truly appreciate.

If you invest in debt funds for two and a half years, then it will attract short term capital gains taxes. Any investment in debt funds which is less then 3 years attract short term capital gains. Short term capital gain is taxed as per the tax slab of the individual investor.

However, in case of investments period is more than 3 years, long term capital gains tax is calculated @ 20% after allowing indexation benefit.

With regards to direct investments, you can visit the respective AMC websites and opt for direct plans over regular plans as you do not want to involve any intermediary.

Thanks for writing to us.

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