Portfolio advise

[nikrod]

Hi DRSambu,

If I switch from debt fund to equity fund then will it be considered as redumption from debt fund & I am eligible for short term gain taxes?
If it is not so then can I keep on doing this for "N" number of times?
Also advice if any fund house charges aplicable whenever we do switch.

Yes if you switch from debt fund, you have to pay STG tax as well as exit loads if applicable.

 

[drsambu123]

Dear rrmhatre72
Yes shifting will attract short term capital gain tax. So we should not shift for minor corrections like 5% etc.I generally switch when market falls atleast 10%and above . again i dont switch fully from debt to equity. I switch 20 % of debt money to equity when market falls 10-15%. So u can set your own triggers. Simple example if ur SIP is 1000 then increase to 1200 when market falls 10-15%. Why because falling market may fall further. No body can predict. so keeping triggers can eliminate our emotions and avoiding frequent shifts from debt-equity-debt( which is never be a good concept). you cant shift any number of times. Because 1.u have to pay exit load in many debt funds. 2. short term capital gain tax.

 

[Oppolvegelf]

Thanks Good Forum

Top-notch information it is surely. My friend has been seeking for this content.

 

[devarshi84]

How is

Sundram financial services opp regular -gr

for a higher risk higher return option?

I am a new investor and would appreciate some suggestions.

 

[asterix24]

How is

Sundram financial services opp regular -gr

for a higher risk higher return option?

I am a new investor and would appreciate some suggestions.

Dear friend,

My 2c: Financial sector doesn't seem to be the place to be in looking at the way global markets are shaping up. Even though you have high risk appetite, you can look at alternative venues like Large & Mid cap funds.

Happy investing !! Happy Diwali !!