INFORMATION
Buying a mutual fund becomes expensive, know how much will be charged on the investment of 1 lakh
According to the new rule, investors will have to pay stamp duty at the rate of 0.005 percent. If you invest in a mutual fund, then you have to pay this charge on the total investment amount.
- Investors will have to pay stamp duty at the rate of 0.005 percent
- Transfer of units will be charged at the rate of 0.015 percent
For future savings, investing in mutual funds is a better option. But the rules of investment in mutual funds have changed since 1 July. Under the new rule, stamp duty will also have to be paid on investment in mutual funds. Obviously, investing in mutual funds will be expensive. In such a situation, the concern of investors has increased. Let us know how much this new rule will affect you.
How much stamp duty will be charged
According to the new rule, investors will have to pay stamp duty at the rate of 0.005 percent. If you invest in a mutual fund, then you have to pay this charge on the total investment amount. This rule will also be applicable to those investing through systemic investment ie SIP or STP. Apart from this, whether you invest in debt or in equity, you have to pay stamp duty in all ways.
In addition to the purchase of mutual funds, transfer of units from one demat account to another demat account at the market or after the market is closed will attract a stamp duty of 0.015 percent. However, stamp duty will not be paid on the delivery of mutual fund units at the end of their time.
Understand the investment example of 1 lakh
For example, for every purchase of Rs 1 lakh, investors will have to pay Rs 5. In this context, units worth Rs 99,995 will be allocated at an investment of Rs 1 lakh.
What is the expert saying
Most experts believe that stamp duty will have a minor impact on small or ordinary investors. However, the challenge has increased for those who invest in crores. Prime Investor co-founder Vidya Bala said, “It will have little or no impact on retail investors.” If the retail investors invest crores of rupees in mutual funds within three months, then only this stamp duty can have some effect on them.
Onkeshwar Singh, associated with SAMCO Securities, said that its effect will depend on the duration of holding the unit. There will be a minor impact on long-term investors. Bala told about the effect of stamp duty that units will be allotted only after deducting stamp duty.