LTCG in Budget 2018: Investing in mutual funds? Look at growth schemes

Budget 2018's 10% long-term capital gains tax has not upset the mutual funds industry

A 10 per cent long-term capital gains (LTCG) tax has not upset the mutual funds industry. Sector officials say that the move will not have any major impact on current inflows in equity and that it will settle down fast. According to them, growth schemes will be more looked for going forward against dividend-paying schemes.  

According to the Finance Bill 2018, "With a view to providing a level playing field between growth-oriented funds and dividend paying funds, in the wake of new capital gains tax regime for unit holders of equity oriented funds, it is proposed to amend the