Investing in mutual funds is a popular choice for many, offering a diverse range of investment options. However, there’s an important factor that investors need to consider \u2013 the stamp duty. In this informative guide, we delve into the world of stamp duty on mutual funds, exploring what it means for your investments and financial goals. Stay informed and make smart investment decisions with LXME.<\/p>\n\n\n\n
Investor Alert:<\/strong> Beginning 1st<\/sup> July 2020, a stamp duty of 0.005% would be levied on all mutual fund purchase transaction, in accordance with the orders issued by the Government of India.<\/p>\n\n\n\n Bottom line:<\/strong> If you invest in mutual funds for overnight or small durations such as few days to few weeks, then yes, you will be impacted!<\/p>\n\n\n\n BUT, analysis by team LXME shows that short term to long term mutual investments can continue investing strongly and not worry because the impact is extremely negligible!<\/p>\n\n\n\n The shorter the holding period, the greater will be the impact on returns on your investments. While, it definitely is a reason to worry for large investors, who park their idle cash for a very short period of time, ranging from few days to a couple of weeks, our own analysis shows, short to long term investors have nothing to worry. <\/p>\n\n\n\n Now some deep-dive details for you to know & throw in your conversations (Heck! All of us want to be the smart one in the room, isn\u2019t it ?)<\/strong><\/p>\n\n\n\n