Mutual Fund Queries

Is dividend above 10 lacs received from mutual fund equity schemes subject to tax

Is dividend above 10 lacs received under an equity scheme dividend option subject to additional 10% tax?

Sep 1, 2016 by Ankita, Mumbai | Mutual Fund

No. There is no additional tax @10% payable in case of dividends received from equity or debt mutual funds... Read More

Where to invest Rs. 10000 for 3 years

I am student and I wanted to invest Rs. 10000 in mutual fund for a lock in period of 3 years. I am confused about where I have to invest in close ended fund or open ended or in a hybrid fund? I want to invest for 3 years because I have to use money for loan repayment. So kindly suggest me. I already started my SIP for Rs. 2000 in Franklin High Growth Fund. Suggest me another SIP also I want to start new SIP for Rs. 1000?

Aug 31, 2016 by Sonal, Pune | Mutual Fund

Glad to note that while studying you have started investing in mutual funds. If you continue to do this, you will get the benefit of starting early by compounding your returns for a very longer period of time... Read More

What to do as my SIPs are unable to beat benchmark and category returns

I am really impressed with your posts and quick response to our queries. Thanks a lot for that. I have a query. I am doing SIP in two MF schemes for 5 years but my funds are behind Category and Benchmark returns. I want to exit those funds but at the same time I want to remain invested in MF. And my confusion is that how should I leave these funds and remain invested in mutual funds so that my target are met. I expect return of 15% from my funds. Please tell me the way, I will really be grateful?

Aug 31, 2016 by Pranav Kumar Tewari, Patna | Mutual Fund

If your SIP is not able to match or beat category and benchmark returns in last 5 years, then frankly speaking you should consider replacing them with suitable schemes... Read More

Can you please review my existing Mutual Funds

I am having SIP in Birla Sun Life Front Line Equity, Motilal Oswal Select 25, SBI Bluechip, SBI Emerging Business, Franklin Smaller Companies, Franklin High Growth Cos, DSP Microcap. Please review?

Aug 31, 2016 by Anurag, Vadodara | Mutual Fund

You have selected good funds for your SIPs. However, you may replace SBI Emerging Business Fund, with another midcap fund from SBI Mutual fund... Read More

Can I invest in RGESS Scheme this year too

In FY 2015-16, I invested in Rajiv Gandhi Equity Savings Scheme for 3 years. I want to know whether, this scheme is available for this FY or not. Please let me know?

Aug 31, 2016 by Basudev, Barbil | Mutual Fund

Under the Rajiv Gandhi Equity Savings Scheme (RGESS), only the first time equity investors can invest up to Rs. 50,000 in approved stocks and mutual funds and claim income tax... Read More

Is SBI Bluechip fund good for 10 years investment

I want to deposit 5 lack for 10 years in SBI Bluechip?

Aug 31, 2016 by Abhai Narain Pradhan, Varanasi | Mutual Fund

Yes absolutely. You can invest Rs. 5 Lakhs for 10 years in SBI Bluechip Fund... Read More

Can you please list out tax structure for all mutual funds

Can you please list out tax structure for all mutual funds?

Aug 30, 2016 by N.Santhana Krishnan, Chennai | Mutual Fund

Please refer to the below article which explains taxation of Mutual Funds for the FY 2015-16. But this is relevant for the current FY 2016-17 also... Read More

Need your suggestion as I want to start SIP in 3 funds which I have selected

I want to start SIP in Birla Sun Life Advantage Fund, HDFC Balanced Fund and L&T India Prudence Fund for 10 years. Need your suggestion on these funds?

Aug 30, 2016 by Pranav Kumar Tewari, Patna | Mutual Fund

You have selected good funds to start your SIPs. Birla Sun Life Advantage Fund is a multi cap fund with 20 years of track record. The fund has delivered more than 18% annual returns since inception... Read More

Is the amount taxable if someone invests 10 lakh in diversified or balanced funds & get SWP 8000 per month

I read always your blog that If someone invest 10 lakh in diversified/balanced funds & get SWP 8000 pm. The amount is tax free or not please clarify?

Aug 30, 2016 by S R Jain, | Mutual Fund

The capital gains arising out of the amount withdrawn as SWP from your lump sum investments in diversified equity funds or balanced funds could be tax free only if the SWP withdrawals start after 12 months... Read More

Can you please suggest fund names as I would like to Invest 3 Lakhs in mutual funds and do SWP

I would like to Invest 3L in mutual funds. I want to go for SWP. Can you suggest which one is best?

Aug 30, 2016 by Kesav, | Mutual Fund

Investing in mutual funds should be done based on your risk taking appetite. You must know how much risk you can take and accordingly invest in appropriate category of funds. You may check your risk profile... Read More