Tax on Mutual Funds in India  Jun 06, 2024


Mutual Funds have become a popular investment avenue for wealth creation ever since AMFI’s Mutual Funds Sahi campaign.

The mutual fund folios have jumped to a record high of 18.15 crore with individual investors, particularly retail investors, now holding over 60% of the industry’s assets.

The fiscal year 2023-24 (FY24) turned out to be the best for the domestic mutual funds industry as Assets Under management (AUM) spurted by nearly Rs 14 lakh crore to a record Rs 53.40 lakh crore as of March 2024 as against Rs 39.42 lakh crore as of March 2023, according to AMFI.

That’s an increase of over 35%, the second highest since the fiscal year 2020-21, when the industry had reported a 41% increase amidst the COVID-19 pandemic.

The Indian equity markets too have fared well in last the couple of years backed by encouraging earnings data.

In FY24 the bellwether, S&P BSE Sensex -Total Return Index (TRI) clocked an absolute return of 26.2%, The S&P BSE Mid Cap Index -TRI and S&P BSE Small Cap -TRI clocked absolute returns of 64.6% and 59.6% respectively (as of March 29, 2024).

So, if you have made realised capital gains or profits, plus earned dividends (if any) from your mutual fund investments or shares, or say, for some reason you booked a loss, in this video know what the tax on your mutual fund investments will be.

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