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What are Mutual Funds primarily used for?

Purchasing securities in the market

Managing personal finances

Paying taxes

Investing in real estate

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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

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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

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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

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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

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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

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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

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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