{"id":1361,"date":"2024-04-23T06:32:38","date_gmt":"2024-04-23T06:32:38","guid":{"rendered":"https:\/\/jamawealth.com\/askguru\/?p=1361"},"modified":"2026-03-02T19:26:25","modified_gmt":"2026-03-02T19:26:25","slug":"how-can-we-get-tax-benefits-from-an-mf-sip-not-elss","status":"publish","type":"post","link":"https:\/\/maxiomwealth.com\/askguru\/2024\/04\/23\/how-can-we-get-tax-benefits-from-an-mf-sip-not-elss\/","title":{"rendered":"How can we get tax benefits from an MF SIP (not ELSS)?"},"content":{"rendered":"\n

There are many tax benefits you get by investing in Mutual Funds SIPs is one way of doing it in a systematic manner. The benefits are:<\/p>\n\n\n\n

  1. Any equity fund held beyond one year gets a lower tax treatment of 10% on long term gains. This is also only after you cross \u20b9 100,000 threshold. This is lesser than the tax bracket of standard income. For this below a 10% slab, the exemption usually means zero tax.<\/li>
  2. Debt funds held more than 3 years, enjoy indexation benefit. This means any gains in excess of inflation are taxed at 20% of the excess. For example, if you make 8% on a debt fund and inflation is 7% then after 3 years, you effectively pay only 0.2% as tax which is very low.<\/li>
  3. Unlike equity where each transaction is taxed (Securities Transaction Tax), all the investments that you make via mutual funds are exempt from such taxes.<\/li><\/ol>\n\n\n\n

    Bonus tip<\/strong>: Invest in such a way that taxes are postponed as long as possible. Naturally bank deposits are not ideal since you pay taxes even on notional gains.<\/p>\n\n\n\n\n

    \n

    Maxiom Wealth \u2014 Free Tool<\/p>\n

    Is Your Mutual Fund Working Hard Enough?<\/h3>\n

    Two funds with similar star ratings can deliver very different outcomes. Use our fund comparison tool to check if you’re in the right scheme for your risk profile and investment horizon.<\/p>\n Compare Funds \u2192<\/a>\n Talk to a Financial Advisor<\/a>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"

    There are many tax benefits you get by investing in Mutual Funds SIPs is one way of doing it in a systematic manner. The benefits are: Any equity fund held beyond one year gets a lower tax treatment of 10% on long term gains. This is also only after you cross \u20b9 100,000 threshold. This… Read More »How can we get tax benefits from an MF SIP (not ELSS)?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[166,38],"tags":[],"class_list":["post-1361","post","type-post","status-publish","format-standard","hentry","category-educational-mutual-funds","category-mutual-funds"],"_links":{"self":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1361","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/comments?post=1361"}],"version-history":[{"count":1,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1361\/revisions"}],"predecessor-version":[{"id":3545,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1361\/revisions\/3545"}],"wp:attachment":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/media?parent=1361"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/categories?post=1361"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/tags?post=1361"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}