Ask ET Mutual Funds: If I sell balanced funds in a year, how will I be taxed?

I want to invest some money in balanced funds for one year. What will be the tax implications if I sell them after one year?

-- Ajay

It seems, you are talking about investing in equity-oriented hybrid schemes. If yes, you should not invest in them with an investment horizon of a year. You should invest in them only if you have an investment horizon of at least five years.

If equity-oriented hybrid funds are sold after a year, they qualify for long-term capital gains tax which is zero at the moment. If investments are sold before a year, short-term capital gains are taxed at 15 per cent.


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