LTCG tax: Choose funds based on investment horizon, not on tax advantage

With the introduction of 10% tax both on long-term capital gains and on dividend, choose funds based on investment horizon and risk appetite, not on tax advantage

Budget 2018 has introduced two key measures that will affect investors in equity and equity-oriented mutual funds. These were the imposition of a 10 per cent tax on long-term capital gains (LTCG) and a similar 10 per cent tax on dividend from these funds. After these changes, make your future investment decisions based on the intrinsic merits of a product, rather than for the tax benefit.    

Equities still good for the long term: The imposition of a 10 per cent tax on LTCG of equity funds is expected to dent investors’ sentiment in the short term, as everyone