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Stamp duty to pinch liquid fund returns further


Summary The move by the Securities and Exchange Board of India to hold at least 20% of liquid funds’ corpus in liquid assets like cash and government securities from July 1 could squeeze returns further.

Parking money with liquid mutual fund schemes — a product used by investors to hold their idle cash — for shorter periods will end up squeezing returns further. From July 1, a stamp duty of 0.005% will be levied on every mutual fund purchase — be it through lump sum or systematic investment plans (SIPs). The lower the holding period of investments, the higher will be the ...


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