Exit load of a Mutual Fund scheme is the percentage of fees charged by the AMC on the NAV of a scheme. This is charged only when the investor redeems in the period for which the exit load is applicable.
Equity Linked Saving Schemes, Tax Free returns on mutual funds, Tax benefit mutual funds. In India, ELSS schemes offer tax benefit under section 80c. ELSS schemes have a lock-in period of 3 years. The main advantage of ELSS schemes is that, both the principal amount and returns obtained from the ELSS schemes are tax free.
Many mutual fund investors have questions about how the income obtained from Mutual Funds are taxed. Well, the fact is the taxation varies for various mutual fund schemes. This article targets the budding investors and tries to explain the tax rates applicable on fund returns for equity and debt mutual fund schemes in simple terms.