Income Mutual Funds Returns

Fund performance is deteriorating compared to similar funds in the medium to long duration fund.

Income mutual funds returns. As long as the period of investment is greater than one year returns from equity funds are taxed at 10. Compare all mutual funds in large cap fund large cap category based on multiple parameters like latest returns annualised returns sip returns latest nav historic performance aum crisil rank. Being a debt fund the returns from an income mutual fund is not very high. This comes like regular income.

So for a monthly income of rs 50 000 rs 1 5 crore will suffice instead of rs 3 crore as with fds. However the tax advantage has yet another hidden factor. Mutual fund calculator is a tool that predicts the overall return on investment that an individual gets on maturity given the principal investment amount and the expected rate of return. And no matter how high your savings and expenditure it s still taxed at 10.

Moreover the capital gains rules are different for equity and non equity schemes. Mutual fund schemes have dividend plans where the fund house releases dividends to investors periodically. And tax rates are different for both. You can claim a deduction up to rupees 1 50 000 only under section 80c.

The dividend that is received in the hands of the investor is tax free up to rs 10 lakh in. The returns earned from mutual funds are taxed under the head income from capital gains and capital gains can be short term or long term based on the holding period of investments. Mutual funds that fall under the category of pension and elss will help you with tax savings under section 80c of the income tax act. You must look for a scheme with a lower expense ratio.

Sebi has created an upper limit for the expense ratio for income funds at 2 25. Whenever you are to file your income tax return then it is advised that you discuss with an income tax consultant first. An income fund is a type of debt mutual fund which generates returns by investing in relatively long dated debt instruments like government securities corporate bonds debentures certificates of deposit etc. Growth mutual funds are those where the returns would automatically get reinvested and you would get such returns or gains when you sell your mutual fund units.