I have a doubt about actual gain from the gilt fund.
If I invested 1,00,000 in X gilt fund, in a year this fund gave 10% return. If I withdraw the amount it will be 1,10,000. Suppose, I am in the 10% tax bracket. So I have to pay 1,000 on my gain i.e. 10,000.
I already paid an expense ratio to MF house suppose 2%.
In total, I am losing 2% + 10% from my actual gain.
Is my calculation correct? Does that mean that I am losing my gain as a part of tax?
1 Answers
Hi,
Kindly note that NAV captures the expense ratio.
Yes, your calculation is correct.
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