Hi Sreekanth
When one reviews the mutual fund portfolio and observes consistent non performing funds whats the best strategy to realign.Do you redeem the fund in one go or opt for a SWP. what would be the stratergy if the fund has a SIP associated with it as the last in SIP would have to wait for a year to avoid taxation.
Thanks in advance
1 Answers
Hi,
Kindly note that Long term capital gains on Equity funds are now taxable from FY 2018-19 onwards.
I prefer to manually redeem the units from non-performing fund and move to a better one in few installments depending on the market conditions.
If one do not have time or skill or interest to track the fin markets, can opt for STP (Systematic transfer plan) if it is withing same fund house. If the newly opted fund is from a different AMC then can do the switch manually or set up STP from liquid fund to newly opted fund (both funds should be from the same fund house). But, this route can have lot of tax implications.
Kindly read :
Thanks Sreenath for your time and response.
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