1. Advisorkhoj
  2. Post Your Queries
  3. Mutual Fund
  4. What is the taxation when we do STP to equity fund

What is the taxation when we do STP to equity fund

When we do STP from MIP mutual fund to equity fund what is taxation? In which mutual funds it is allowed to do STP to equity funds?

May 5, 2017 by Rekha, Mumbai  |   Mutual Fund

When you do STP from MIP Mutual Fund scheme or any other debt scheme, and if the such STPs are within three years from the date of investment, then short term capital gains tax would be payable on the profits arising out of each STP transfer. See this tool to understand how tax is calculated on the STPs from debt fund to equity fund.

There is no hard and fast rule of STP with regards to transfer from one mutual fund scheme to the other. You can even transfer from equity fund to equity fund. Having said that, commonly STPs are used to transfer from liquid fund to equity fund with an idea to benefit from rupee cost averaging.

Hope the above answers your query. Thanks for writing to Advisorkhoj!

comments powered by Disqus
You haven't found the answer for your queries? Do post your queries to us.

© 2016 Advisorkhoj - A Gamechanger Business Services (I) Pvt. Ltd. Brand - All Rights Reserved