The Ultimate Guide to Finding the Best Mutual Fund
Looking for the best mutual fund investment? It may feel like looking for a needle in a haystack, considering the number of mutual funds available in India. However, realizing where and how to find the right mutual fund can make the task less daunting. One of the initial steps in this direction is knowing how to check mutual fund status and understanding the concept of income tax slabs in India. This article will serve as your ultimate guide to finding the best mutual fund.
How to Check Mutual Fund Status
The status of your mutual fund investment gives you an idea of how your investment is doing in the market. Gone are the days when you had to wait for your investment company to send you quarterly reports. With the advancement in technology, you can now easily check your mutual fund status online.
Several mutual fund companies and financial platforms provide options for investors to view their mutual fund status. You will need to log in to the company’s website or mobile app using your PAN, folio number or mobile number. Once you’re logged in, you can check several things about your mutual fund investment, such as the net asset value (NAV), any gains or losses, the performance of the fund, and so forth.
In addition, fund houses also send an account statement via email, which contains comprehensive information about your mutual funds. It includes the number of units, NAV, fund performance, and investor details. It is suggested to review these statements diligently to keep a track of your investments.
Understanding Income Tax Slabs
When it comes to investing in mutual funds, it is vital to understand the income tax slabs in India since profits from mutual funds are taxable. The rate for these taxes is determined by the income tax slabs set by the government.
In India, for the fiscal year 2021-2022, those earning up to INR 2.5 lakh p.a. are exempt from tax. Those earning between INR 2.5 lakh to INR 5 lakh are taxed at 5%, those earning between INR 5 lakh to INR 10 lakh are taxed at 20%, and anyone earning over INR 10 lakh p.a. is taxed at 30%.
However, the taxation on mutual fund profits depends on the type of fund (equity or debt) and the period of holding. For example, the long-term capital gains (LTCG) on equity mutual funds exceeding INR 1 lakh are taxed at 10% without indexation if the investment has been held for more than a year. Debt mutual funds held for more than three years attract a tax of 20% after indexation.
Finding the Best Mutual Fund
Finding the best mutual fund involves evaluating several factors such as past performance, fund manager’s history, expense ratio, investment strategy, risk tolerance, and financial goal alignment. It is recommended to diversify your investments amongst different types of funds to create a balanced portfolio.
The Bottom Line
Investing in mutual funds can provide great rewards, but it requires time, knowledge, and regular monitoring. Understanding how to check mutual fund status and the income tax slabs in India can significantly influence your decision of investing in a mutual fund.
Disclaimer: Please note that investing in the stock market always carries risk, and it is important to conduct thorough research and consider all pros and cons before making any financial decisions.
Summary:
Investing in mutual funds requires a thorough understanding of various market parameters and diligent ongoing tracking. One such important aspect is learning how to check mutual fund status, which enables investors to monitor their investments’ performance and make informed decisions accordingly. Moreover, understanding the income tax slabs is critical as it determines the tax implication on the profits made from mutual funds. This guide aims to provide useful insights on these aspects and other factors to consider while investing in mutual funds. Remember, successful investment involves well-informed decisions, thorough market research, regular tracking, and a well-diversified portfolio.
Go to Home