Part 1 - 15% of MF = 20% of PMS | Kirtan Shah CFP

Assuming everything else constant, there are 2 reasons why MFs are better than PMS if you want to invest in Equities

(a) Taxation - Your PMS will have to generate 20% returns to match the 15% returns on MF because everytime the PMS buys or sells stocks, you pay a 20% or 12.5% tax on it where as when your MF buys & sells you don’t pay any tax.

(b) Diversification - The minimum investment in a PMS is 50 lakhs. So if you have 50L also you can invest only in 1 PMS vs being able to invest across multiple MFs for diversification

(Mutual Fund, MF, PMS)

#invest #fpaedutech #investingforbeginners #investment #investing101 #investments #cfp #cfa

[DK-oxze]

What about a PMS of MFs like the Dezerv PMS?

[rajuok]

Sir, how long a Mf house, or Mf scheme can hold back investors money without investing, is there a SABI rules for this,
Thanks

[chiragraval]

But returns difference is more in pms😅

[sada_manali]

You know ltcg is 12.5 % for both and short term 20% same

[pyramustheking]

Wrong information is circulated. You should talk about LTCG as well which is applicable to Mutual Funds as well.

[amar]

Modi will be with tax on MF based on acrual gains