Take Baby Steps Towards Investment With Ultra Short-Term Funds
What are Ultra Short-Term Funds?
Ultra Short-Term Funds are the debt funds that invest in fixed income instruments that are mostly liquid and have short-term maturities.
How do Ultra Short-Term Funds work?
Why should one invest in Ultra Short-Term Funds?
Ultra Short-Term Funds and Taxation
Holding Period | Income Treatment | Tax Implication |
---|---|---|
Less than 3 year | Short-Term Capital Gain | Added to income and taxed as per individual’s tax bracket of 10%, 20% or 30% |
More than 3 years | Long-Term Capital Gain | 20% with indexation benefit on cost |