Tax treatment of BALANCED FUNDS

POSTED BY sreedhar raj ON December 9, 2010 10:33 pm ONE COMMENT


     Just for clarification… Heard that balanced funds that have more than 65% allocation to equities are treated in the same way as pure equity funds (no long term capital gains tax after 1 year) . Will this continue under the new DTC as well?? Also could u suggest some balanced funds that will always have more than 65% allocation to equities??

One reply on this article “Tax treatment of BALANCED FUNDS”

  1. It’s difficult to comment new rules under DTC. The more will be clarified in next budget session. Till now, no change in balanced fund taxation have been heard under DTC.

    All balanced mutual funds maintains 65% ratio to equity to mark them “balanced”. They also take care of their objective of scheme and branding. Nothing to worry. Even if in future, they planned to change ratio, as per AMFI rules, they will inform all the investors about the change with the option to exit from the scheme without any charges.

    Hope it will help you.

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