Day Trading Stocks & Futures

siddhant4u

Well-Unknown Member
Stamp duty to pinch liquid fund returns further

From July 1, a stamp duty of 0.005% will be levied on every mutual fund purchase — be it through lump sum or systematic investment plans (SIPs). The lower the holding period of investments, the higher will be the impact. The move could impact large institutional investors who mostly put their money in liquid schemes for shorter time periods.

A report by ICICI Mutual Fund shows that the annualised returns could be lower by 1.82% due to stamp duty for holding period of a day. For seven days, the returns fall by 0.26%. As the holding period increases, the impact would be less. If the investments are held for 15 days, the investor could take a 0.12% hit, while for 30 days, the impact would be 0.06%.

https://economictimes.indiatimes.co...ofinterest&utm_medium=text&utm_campaign=cppst


When the annual return on any fund is hardly approx 6% - 8%, putting an additional tax on a digital product does not serve any purpose. In fact there is no service being provided on the transaction by the stamp duty guys. There is no paperwork, physical inspection, register / record keeping and no rubber stamp impression on any document involved. So on what basis is this really levied. There is no physical stamp and no record being maintained by the stamp guys, just a reporting by Mutual fund houses.

This according to me is baseless and illegal. Mutual fund houses should take this up and have the stamp duty abolished.
Elephant in the room is high expense ratios for some mutual funds. Some estimates indians pay tens thousand cr every year as annual fees for mutual funds when 70% of them don’t even beat their benchmark
 

Raj232

Well-Known Member
Elephant in the room is high expense ratios for some mutual funds. Some estimates indians pay tens thousand cr every year as annual fees for mutual funds when 70% of them don’t even beat their benchmark
We already have an elephant in the room, going unnoticed and on top of it.. additional Stamp duty !!!
 

bpr

Well-Known Member
Stamp duty to pinch liquid fund returns further

From July 1, a stamp duty of 0.005% will be levied on every mutual fund purchase — be it through lump sum or systematic investment plans (SIPs). The lower the holding period of investments, the higher will be the impact. The move could impact large institutional investors who mostly put their money in liquid schemes for shorter time periods.

A report by ICICI Mutual Fund shows that the annualised returns could be lower by 1.82% due to stamp duty for holding period of a day. For seven days, the returns fall by 0.26%. As the holding period increases, the impact would be less. If the investments are held for 15 days, the investor could take a 0.12% hit, while for 30 days, the impact would be 0.06%.

https://economictimes.indiatimes.co...ofinterest&utm_medium=text&utm_campaign=cppst


When the annual return on any fund is hardly approx 6% - 8%, putting an additional tax on a digital product does not serve any purpose. In fact there is no service being provided on the transaction by the stamp duty guys. There is no paperwork, no physical inspection done, no register / record keeping and no rubber stamp impression on any document involved. So on what basis is this additional stamp duty really levied. There is no physical stamp and no record being maintained by the stamp guys, just a reporting by Mutual fund houses.

This according to me is baseless and illegal. Mutual fund houses should take this up and have the stamp duty abolished.
on what basis stt is applied ...are they providing any service no ...it is just another tax period ...
stamp duty is another similar excuse
 

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