1. Nippon India Pharma Fund Direct Plan Growth
This is a fund that invests mainly in shares of pharmaceutical and healthcare companies.
We believe that investors should avoid funds that have a narrowly defined investment mandate such as this one. Instead, they should invest in multi cap funds which provide complete freedom to the fund management team to invest in companies from which it expects maximum gains.
But if you do invest, you must do so only through the SIP route.
Warning: Do not invest in this, or any other pharma sector fund, if you need to redeem your investment in less than seven years.
Taxability of earnings:
Capital gains
2. Axis Blue chip Fund Direct Plan Growth
When you invest for five years or above, you can expect gains that comfortably beat the inflation rate and are also higher than fixed income options. But be prepared for ups and downs in your investment value along the way.
This is a fund that invests in big companies. Compared to those that invest in smaller companies, such funds tend to fall less when stock prices fall. Therefore, they are more suited to conservative equity investors.
Like all equity funds, you must invest only through the SIP route.
Warning: Do not invest in this, or any other large cap fund, if you need to redeem your investment in less than five years.
Capital gains
• If the mutual fund units are sold after 1 year from the date of investment, gains upto Rs 1 lakh in a financial year are exempt from tax. Gains over Rs 1 lakh are taxed at the rate of 10%.
• If the mutual fund units are sold within 1 year from the date of investment, entire amount of gain is taxed at the rate of 15%.
• No tax is to be paid as long as you continue to hold the units.
Dividends
• Dividends paid by the mutual fund scheme are taxed at the rate of 10% (effectively 11.648%, including surcharge and cess). This is known as Dividend Distribution Tax (DDT). Though the investor does not pay this tax directly, it is deducted from the dividend income before passing on to the investor.
3. Parag Parikh Long Term Equity Fund Direct Plan Growth
When you invest for five years or above, you can expect gains that comfortably beat the inflation rate and are also higher than fixed income options. But be prepared for ups and downs in your investment value along the way.
This is a multi cap fund where the fund management team has complete freedom to invest in companies of different sizes, depending upon where it expects maximum gains. This versatility makes multi cap funds most suitable for equity fund investors as the job of stock selection is completely left to the fund manager, which is the very idea of investing in a mutual fund.
Like all equity funds, you must invest only through the SIP route.
Warning: Do not invest in this, or any other multi cap fund, if you need to redeem your investment in less than five years.
Capital gains
• If the mutual fund units are sold after 1 year from the date of investment, gains upto Rs 1 lakh in a financial year are exempt from tax. Gains over Rs 1 lakh are taxed at the rate of 10%.
• If the mutual fund units are sold within 1 year from the date of investment, entire amount of gain is taxed at the rate of 15%.
• No tax is to be paid as long as you continue to hold the units.
Dividends
• Dividends paid by the mutual fund scheme are taxed at the rate of 10% (effectively 11.648%, including surcharge and cess). This is known as Dividend Distribution Tax (DDT). Though the investor does not pay this tax directly, it is deducted from the dividend income before passing on to the investor.
4. SBI Focused Equity Fund Regular Plan Growth
When you invest for five years or above, you can expect gains that comfortably beat the inflation rate and are also higher than fixed income options. But be prepared for ups and downs in your investment value along the way.
This is a multi cap fund where the fund management team has complete freedom to invest in companies of different sizes, depending upon where it expects maximum gains. This versatility makes multi cap funds most suitable for equity fund investors as the job of stock selection is completely left to the fund manager, which is the very idea of investing in a mutual fund.
Like all equity funds, you must invest only through the SIP route.
Warning: Do not invest in this, or any other multi cap fund, if you need to redeem your investment in less than five years.
Capital gains
• If the mutual fund units are sold after 1 year from the date of investment, gains upto Rs 1 lakh in a financial year are exempt from tax. Gains over Rs 1 lakh are taxed at the rate of 10%.
• If the mutual fund units are sold within 1 year from the date of investment, entire amount of gain is taxed at the rate of 15%.
• No tax is to be paid as long as you continue to hold the units.
Dividends
• Dividends paid by the mutual fund scheme are taxed at the rate of 10% (effectively 11.648%, including surcharge and cess). This is known as Dividend Distribution Tax (DDT). Though the investor does not pay this tax directly, it is deducted from the dividend income before passing on to the investor.
5. Canara Robeco Bluechip Equity Fund Regular Plan Growth
When you invest for five years or above, you can expect gains that comfortably beat the inflation rate and are also higher than fixed income options. But be prepared for ups and downs in your investment value along the way.
This is a fund that invests in big companies. Compared to those that invest in smaller companies, such funds tend to fall less when stock prices fall. Therefore, they are more suited to conservative equity investors.
Like all equity funds, you must invest only through the SIP route.
Warning: Do not invest in this, or any other large cap fund, if you need to redeem your investment in less than five years.
Capital gains
• If the mutual fund units are sold after 1 year from the date of investment, gains upto Rs 1 lakh in a financial year are exempt from tax. Gains over Rs 1 lakh are taxed at the rate of 10%.
• If the mutual fund units are sold within 1 year from the date of investment, entire amount of gain is taxed at the rate of 15%.
• No tax is to be paid as long as you continue to hold the units.
Dividends
• Dividends paid by the mutual fund scheme are taxed at the rate of 10% (effectively 11.648%, including surcharge and cess). This is known as Dividend Distribution Tax (DDT). Though the investor does not pay this tax directly, it is deducted from the dividend income before passing on to the investor.
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