Synopsis
Amid the continuous outflows from equity mutual funds, one category that has been receiving huge inflows is the dividend yield funds category.
Amid the continuous outflows from equity mutual funds, one category that has been receiving huge inflows is the dividend yield funds category. The category witnessed firm inflows worth Rs 1,490 crore in December. This was the highest inflow for the category since Amfi changed its format in April 2019. Data suggests that HDFC Dividend Yield Fund, which was launched on December 18, 2020 alone has collected Rs 1,500 crore. Dividend yield funds
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BT Insight: How to save long-term capital gains on equity mutual funds
Every penny of reduction in tax outflow boosts your return. If your expected long-term capital gain is below Rs 1 lakh, your gains will be completely exempted and hence you would not need to go for any additional effort to save taxes
Naveen Kumar | January 14, 2021 | Updated 21:34 IST
While equity mutual funds continue to be one of the best ways to earn higher returns, lack of tax planning may erode your gains. Returns on equity mutual funds are no longer exempted from tax as they were in past. Long-term capital gain is chargeable to tax in the year in which mutual funds are sold by the investor. Long-term capital gain on sale of equity oriented mutual fund is chargeable to tax at 10 per cent from April 1, 2018, prior to that it was exempted from tax in the hands of investor. However, long-term capital gain up to Rs 1 lakh is exempt from tax, says Kapil Rana, Founder & Chairman, HostBooks.
According to data from the Association of Mutual Funds in India, collections from SIPs in December rose to ₹8,418 crore, the highest for a month after March 2020.