What are Mutual Funds primarily used for?

Purchasing securities in the market Managing personal finances Paying taxes Investing in real estate

What is the lock-in period for Equity-Linked Savings Scheme (ELSS) funds?

3 years 1 year 5 years There is no lock-in period

How are long-term capital gains from debt funds taxed?

10% tax rate without indexation 20% tax rate with indexation 15% tax rate without indexation 25% tax rate with indexation

What is the tax rate for long-term capital gains on unlisted equity funds?

10% with indexation 15% without indexation 20% with indexation 25% without indexation

What is the key difference in tax implications between a Systematic Investment Plan (SIP) and a lump sum investment in mutual funds?

SIPs are exempt from capital gains tax Lump sum investments are taxed at a higher rate Each SIP installment is treated as a separate investment for tax purposes There is no difference in tax implications

What significant change was introduced to the taxation of long-term capital gains from equity funds in 2018?

Section 10(38) was introduced, exempting long-term capital gains from tax A 10% tax rate on long-term capital gains above Rs. 1 Lakh was introduced under Section 112A Long-term capital gains tax was abolished for all equity funds Indexation benefits were extended to equity fund investments

What is the primary advantage of investing in Mutual Funds compared to direct investments in securities?

Guaranteed returns Lower risk Economies of scale and professional management Tax-free income

What does the Cost Inflation Index (CII) help to achieve in the context of long-term capital gains tax?

Increase the taxable amount Reduce the taxable amount by factoring in inflation Calculate the total investment value Determine the lock-in period for investments