If you are an investor, then before investing your question will be about returns. As we know both property and mutual funds are great investment options. There has been a lot of improvement in the property market especially during the Corona period. Mutual funds also usually give returns of 10-15% every year easily. In such a situation, if the investor wants to choose one, then it is important to know about what is the better option in property and mutual fund and what are the advantages and disadvantages of investing in both. ACE Golfshire
Before understanding these things, keep this thing in mind that if you are buying the first house then this is your need. Here you will not get much benefit of rental income and capital appreciation. However, buying a second home can bring a regular income apart from tax relief. Apart from this, there is also capital appreciation. There is a lot of tax relief if you buy a house. There is a separate tax relief on the principal amount and the interest part separately in the EMI of every month. There is a benefit of deduction of Rs 1.5 lakh on principal amount repayment in a financial year. At the same time, the benefit of deduction of Rs 2 lakh is available on interest repayment on an annual basis. ACE Parkway
Mutual funds will give great returns in the long term
If we talk about mutual funds, then if you invest in it for a long time, then the returns can be multibagger. Financial experts say that if you want to earn multibagger returns apart from mutual funds, then you have to invest for a long period. Apart from this, you also get tax relief here.
Short Term for Equity Funds Less than 12 months
If you have invested in equity funds where 65 per cent of the portfolio is invested in the stock market, then for this long term capital gains are made after 12 months. Before that there is short term capital gain. The tax rate for STCG is 15 percent and a cess of 4 percent is levied separately. The long term capital gains tax rate for equity funds is 10 per cent. A cess of 4 per cent is levied separately. If the long term capital gain is up to 1 lakh in a financial year, then it will be completely tax free. Spectrum Metro Mall
Short term up to 3 years for debt funds
If you have invested in debt mutual funds, then the short term for this is 3 years. For capital gains before 3 years, the investor will have to pay tax at the same rate as the tax bracket he falls in. This means the tax rate on short term capital gains can be up to 30 per cent. A cess of 4 per cent is levied separately. The tax rate on capital gains after 3 years is 20%. However, it does get the benefit of indexation.