Should I cut down the number of funds, given the recent LTCG tax?
Dhirendra Kumar tells whether it is advisable to cut down the number of funds after the re-imposition of LTCG tax
By Research Desk | Jun 1, 2018
Currently, I am invested in 13 equity funds and I would like to cut down on that number. But given the recent 10 per cent LTCG tax, is it really advisable?
Yes. Reduce the number of schemes. You won't be liable for too much tax. For the investment which is less than one year old, if you are sitting on significant gains, which is unlikely to happen, it is better to wait for that period. Because the gains till January 31, 2018 has been sheltered. For the gains on investments which are less than one year old, you will be liable to short-term capital gains tax at 15 per cent. Make your investment more than one year older and meanwhile stop your SIPs. Invest in only select few from hereon. So that your investments are getting older and then make the changes.