Exit Load & Tax Implications on Withdrawals
When you withdraw your mutual fund investment, the following charges may apply:
1. Exit Load
- What is Exit Load? It is a fee charged by the Asset Management Company (AMC) if you redeem your mutual fund units before a specified period.
2. Tax on Capital Gains
Depending on how long you've held the investment, different tax rates apply:
- Long-Term Capital Gains (LTCG) Tax
LTCG tax applies when you hold your mutual fund investments for a longer period before selling.
- Short-Term Capital Gains (STCG) Tax
STCG tax is applicable when you sell your mutual fund investments within a short holding period.
How are short-term and long-term capital gains calculated in mutual funds?
Exit Load & Tax Implications on Withdrawals
When you withdraw your mutual fund investment, the following charges may apply:
1. Exit Load
- What is Exit Load? It is a fee charged by the Asset Management Company (AMC) if you redeem your mutual fund units before a specified period.
2. Tax on Capital Gains
Depending on how long you've held the investment, different tax rates apply:
- Long-Term Capital Gains (LTCG) Tax
LTCG tax applies when you hold your mutual fund investments for a longer period before selling.
- Short-Term Capital Gains (STCG) Tax
STCG tax is applicable when you sell your mutual fund investments within a short holding period.
How are short-term and long-term capital gains calculated in mutual funds?
