How to calculate capital gains for your Equity and Debt Mutual Funds?

Milestoneglobal02 Jul, 2022Other

Mutual funds are the most popular investment vehicles today. As you can invest in different asset classes through mutual fund schemes, there is a fund for every type of investor. Mutual funds are easily accessible through online platforms, financial product distributors, and mutual fund distributor services. However, it is important to understand how a mutual fund works and what are the complexities involved to make an effective investment decision. Mutual funds are broadly categorized into three types based on the asset classes they invest in ? equity mutual funds, debt mutual funds, and hybrid mutual funds. When it comes to income tax perspective, hybrid funds are taxed as either debt-oriented funds or as equity-oriented funds depending on the percentage of allocation into the asset classes. Each mutual fund scheme that you invest in can generate two types of income ?dividends and capital gains at the time of sale.