Franklin Templeton opinion and Tax implications for debt funds

Q & A ForumCategory: Mutual FundsFranklin Templeton opinion and Tax implications for debt funds
[email protected] asked 4 years ago
HI I had invested in 3 FT MFs (apart from other MFs)-
    1. Franklin Low Duration Fund - (2L in 2017 & 1.5L in 2018 and 1L in 2019)
    2. Franklin Flexi Cap Fund (New name)
    3. FRanklin Smaller Companies fund
I have 2 questions  :
  1. As part of the debt find winding up, FLDF 64% money was returned back and and i am expecting the remaining amount to come back in this month or next. I would like to understand how tax should be calculated for these partial redemption as it has both long term and short term taxation involved. Is there any easy tool for managing these ?
  2. I do not have fresh investments in the other two funds. But just wanted to have opinion as to if i should redeem and invest in any other fund or I could just leave it for 10+ year goal ?  Can you suggest any other fund to replace these for investing.
Thanks Janani
3 Answers
Sreekanth Staff answered 4 years ago
Dear Janani, 1 - Depending on the tenure of holding, capital gains Short or Long term taxes are applicable. You can take a CA's help for calculation purpose when filing your ITR. Related article : Mutual Funds Taxation Rules FY 2020-21 (AY 2021-22) | Capital Gains Tax Rates Chart  
[email protected] replied 4 years ago

Thank you for the link. Oh sure, I thought I could do that myself or with help of any tool. But yes I will check and take some help.

Sreekanth Staff answered 4 years ago
2 - Have you invested in any other MF Schemes??
[email protected] replied 4 years ago

Yes, the other MFs in my portfolio are –
* Axis Long Term Equity – This was mainly for ELSS 80c
* HDFC Mid Cap Opportunities
* Canara Robeco Equity Hybrid Fund (This is a recent one that I started to replace Tata Hybrid Equity)

[email protected] replied 4 years ago

Please suggest if this looks fine or if you would suggest a new portfolio

[email protected] answered 4 years ago
Hi Sree, Could you please let me know what could be an alternative to the above funds that I could invest ? Should I rebalance my portfolio ?
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