GST on Mutual fund: GST is applicable from starting SIP to withdrawing money, how to protect yourself from the charges?

Mutual funds have become a very popular platform among investors today. Till now, you must have read many articles about GST levied on different products. Let us tell you that GST is also levied on mutual funds. We are not talking about the tax levied on profit here.

GST is levied on the services provided in mutual funds. Very few people know about this.

Where is GST levied in a Mutual Fund?

Charges Tax
Management and advisory fees 18%
Exit load 18%
Transaction charge 18%
Trading fee 18%
Registrar fee 18%
Statutory fee 18%
Financial advisory service 18%

All these charges directly and indirectly affect your portfolio. For example, if the GST levied on management and advisory fees increases, then the expense ratio will increase further.

Similarly, if the GST on exit load increases, then more money will be deducted while withdrawing money.

Any change in the GST Council?

Let us tell you that in this GST Council meeting, no announcement was made regarding GST on mutual funds.

How to protect yourself?

Choose a fund that has many qualities along with better performance. A fund that has a low exit load and expense ratio. However, the return from mutual funds depends on the fluctuations in the market. Before investing in it, definitely take the advice of a financial advisor.

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