Any tax complications by doing SIP in Mutual Funds ?

POSTED BY radhevajrakaya ON January 30, 2014 9:20 am COMMENTS (4)

I am interested in doing a SIP . So I wanted to Know doing SIP via FundsIndia would be better or doing through SBI Bank (if any route is present).

I can Invest Rs500 – Rs1000 after 2-3years I will increse my SIP . So at present If I do SIP than which Funds I must Choose. Are there any TAX complications.

4 replies on this article “Any tax complications by doing SIP in Mutual Funds ?”

  1. arjunp3000 says:

    Hi Radhev,

    Investing in Mutual Funds directly with the AMC will give you a lower expense ratio. However, as a first time investor, investing through a Distributor can be highly beneficial for you. You will get FREE Financial advisory services, portfolio rebalancing, customer support, document pick up and drop service, Online investment tools, etc.

    Investing through a Distributor also has the added advantage of investing from home. The distributor will do all the running around and make sure you get your paperwork in order. For first time investors, the distributor will also ensure that you are KYC compliant.

    Setting up an SIP through a distributor will NOT incur any additional taxes.

    Distributors often have a panel of financial advisors who will offer unbiased financial advice. This service is often available for free to investors.

    You can choose from our list of top performing mutual funds here – http://www.fundsindia.com/select-funds

    Reg,
    Arjun
    FundsIndia.com

  2. ashalanshu says:

    Dear Radhey, why are you investing through a broker (fundsindia or SBI bank, both are broker here)? You w’d have to pay a higher expense ratio as from your higher expense ratio, trail commission ‘ll be given to these brokers. if you opt to invest directly into the funds of your choice with AMC, the trail commission ‘ll be lower and thus you ‘ll get higher return on your money.

    Thanks

    Ashal

  3. ashalanshu says:

    Dear Radhey, why are you not investing directly with the AMC to save on trail commission?

    thanks

    Ashal

    1. radhevajrakaya says:

      Not able to get You .

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