Here is a collection of must-see videos that will help you understand the world of mutual funds. Happy Investing!

Financial discipline is similar to going on a diet. It is never easy. There are plenty of temptations - an urge to over spend, letting emotions control your investments and confusion due to the problem of plenty - look at the plethora of options available in the market, with the returns of one scheme trying to beat the other. Who does one turn to for advice? Dependency on one person or your financial advisor alone is also tricky. Which is why people often turn to mutual funds.

The argument here is that experts are taking care of your investments. Depending on your investment appetite and risk appetite, mutual funds come with a good mix of both equity and debt, which helps you earn an interest of 12-15% or more depending on the type of investment schteme you have picked and how the markets have performed overall. Yet, selecting a mutual fund can be confounding due to the raft of choices available.

Episode 37 I Expert

Long-term capital gains tax

If you hold a share and security for a period of over 36 months before you transfer, the investment would be treated as a long-term capital asset. However, equity shares bought on a recognised stock exchange or units purchased, government securities, listed debentures and zero coupon bonds, holding period would be 12 months rather than 36.

In the Union budget of 2018, the long-term capital gains were re-introduced. A new section 112A was introduced to withdraw the exemption u/s 10(38) to tax long-term capital gains on equity share in a company or a unit of an equity-oriented mutual fund. Having said that, long-term capital gains are applicable on listed securities which would exceed Rs 1 lakh and are taxed at 10 percent.

Short-term capital gains would attract a 15 percent tax and for debt funds, both short-term and long-term funds would attract tax. The long-term capital gains on debt funds would be at 20 percent with indexation and 10 percent without indexation. Indexation is the purchase value for inflation which increases the purchase cost and lowers the gain. Indexation is done by multiplying the property’s cost by the Cost of Inflation Index (CII) from the year in which it was sold to dividing it to the CII of the year it was purchased.

If you have invested in real estate earlier under section 54 of the Income Tax Act, the gains you earned could be used to buy another house but after the announcement, the rollover benefit has been extended to two residential houses if your capital gains fall within the Rs 2 crore limit. The tax exemption would be given if you purchase a new residential property or construct a house within one year of the sale of the property or 2 years after the property has been sold. In case you are looking to construct a new house then you get up to 3 years to do so from the date of sell on the property.