POSTED BY September 22, 2011 8:31 am COMMENTS (18)ON
There are few things about the redemption process that would be helpful if you throw some light on.
1.I heard anything that is transacted in the stock market has a Securities Transaction Tax(STT). In the case of MFs the STT is paid by the AMCs and adjusted in calculating NAV.So the investor does not have to pay STT while redeming.Am I right?
2.There is exit load if one redeems before a certain period,generally 1 yr for open ended mfs.Now,the mf deducts the exit load and gives the investor the rest sum.Am I right?
3.Does the mf deducts the STCG(in case of redemption before 1 yr ) or the investor has to calculate it according to his tax slab in the IT return and pay to the IT dept?
I know these are quite elementary questions but your reply will help me and many like me.