Axis Gold Fund

Suitability

"Gold funds provide returns that are closely in line with the returns provided by gold.

We do not think of gold as a good long-term investment avenue and therefore we believe that investors can avoid these funds altogether. Read this article to know why.

But for those retail investors who'd still prefer to invest in gold, we believe that the Sovereign Gold Bond Scheme offered by the Government of India is a better alternative. This scheme offers a guaranteed return of 2.5 per cent per year over and above the return provided by the price of gold, though the investment cannot be redeemed before a tenure of five years."

Taxation

Capital Gains Taxation

• If investment is made on or after 1 April 2023: Entire amount of gain is added to the investors' income and taxed according to the applicable slab rate.
• If investment is made before 1 April 2023:
  
• Sold within 3 years from the date of investment: Gains are added to the investors' income and taxed according to the applicable slab rate.
• Sold after 3 years from the date of investment: Gains are taxed at the rate of 20% after providing the benefit of inflation indexation.
• No tax is to be paid as long as you continue to hold the units.

Dividend Taxation

• Dividends are added to the income of the investors and taxed according to their respective tax slabs. Further, if an investor's dividend income exceeds Rs 5,000 in a financial year, the fund house also deducts a TDS of 10% before distributing the dividend.