How will new tax rules impact your investment in FoFs?
long-term capital gains
on FoFs (
fund of funds
) if held for more than 24 months. There is renewed interest among investors in such schemes, with a number of new launches from fund houses.
WHAT IS A FUND OF FUND (FoF)?
A fund of fund (FoF) is a mutual fund that invests in other mutual funds or exchange-traded funds (ETFs) rather than directly in individual stocks or bonds. Essentially, it's a fund that invests in other funds, providing investors with a diversified portfolio through a single investment
Best MF to invest
Looking for the best mutual funds to invest? Here are our recommendations.
View
Details
»
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
'Swing is King': Mr. Hemant's Strategy Finally Explained in Free Session
TradeWise
Learn More
Undo
WHICH FoF CATEGORIES ARE POPULAR IN INDIA?
The most popular categories of FoFs are the precious metals category and the
international funds
category. In the gold or silver FoFs, the scheme invests in the gold or silver ETFs of the same fund house. International FoFs invest in funds domiciled outside India, which gives investors exposure to companies listed in other geographies. Recently, the income-plus-arbitrage FoF is also attracting interest, where the scheme invests in a mix of fixed income and arbitrage strategy schemes. In addition, there are equity FoF schemes or thematic FoFs that invest in the best schemes across fund houses or themes chosen from the same fund house. FoFs are now used as a useful tool for diversifying investments across different asset classes
WHY ARE FoF SCHEMES POPULAR IN INDIA? WHAT IS THE TAX INVESTORS HAVE TO PAY?
Many FoFs are getting popular because, as per the new tax rules, an equity-oriented FoF now enjoys long-term capital gains (LTCG) tax of 12.5% if held for more than 24 months. Earlier, gains were taxed in line with the investor's tax slab. If a FoF invests primarily in equity, it's treated as an equity-oriented fund for taxation; otherwise, it's treated as a non-equity fund. Equity-oriented FoFs and those invested in gold ETFs are subject to long-term capital gains (LTCG) tax of 12.5% (plus applicable cess and surcharge) if held for more than 24 months, and short-term capital gains (STCG) are taxed at the investor's slab rate if held for less than 24 months. Non-equity FoFs are taxed at the investor's slab rate for both LTCG and STCG.
Live Events
WHAT IS THE DISADVANTAGE OF A FoF?
One disadvantage of a FoF scheme is that investors have to pay an
expense ratio
twice—one for the underlying scheme and another for the wrapper. Investors must keep this in mind while investing in an FoF, especially in categories like precious metals or debt, where returns are low.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
42 minutes ago
- Time of India
Daily Horoscope: Today's astrological predictions for August 21, 2025
Read today's horoscope, August 21, 2025. Today we'll be taking a closer look at what the stars have in store for each of the 12 zodiac signs. Our astrologer has analyzed the movements of the planets and the alignment of the stars to bring you the most accurate and up-to-date horoscope predictions for the day ahead. Whether you're looking for guidance on love, career, or simply a heads up on what to expect, this has got you covered. Let's dive in to see what the cosmos have in store for you today. Aries Life may feel challenging today, prompting you to seek guidance from elders to navigate the situation. Patience will be key. Concerns over your children's education may trouble you, and a short trip related to their academics is possible. Investors should avoid speculative ventures and carefully assess opportunities before committing funds. Taurus A sense of dissatisfaction may arise as your hard work doesn't yield the expected results, leading to disappointment. Read all documents carefully before signing a new contract. Investment in assets is possible, but rely on your intuition before making decisions regarding fixed assets. Gemini Social gatherings and family occasions could keep you busy today, helping you expand your network. A short work-related trip may also be on the agenda. Disputes with siblings are likely to be resolved, and subordinates may cooperate to complete a challenging project. Confidence will be high, but remember to remain patient in your interactions. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around Blinkist: Warren Buffett's Reading List Undo Cancer Family gatherings will keep you engaged today. Your polite nature will boost your image among relatives and friends. Spending on artifacts or decorative items may enhance your social status. Good news from a close relative could brighten your day. Leo Happiness surrounds you, helping you enjoy your routine tasks. Strong vitality will assist in making tough decisions that could boost future profits. A short work-related trip may be planned. Support from colleagues and subordinates will help you meet deadlines. Students may find improved focus, while mindful eating will help avoid stomach issues. Virgo A feeling of dullness may linger, and sleeplessness could affect your mental and physical well-being. Concerns about a family member's health may trouble you. Unnecessary expenses on trivial items could harm your savings. Be cautious, as there is a risk of conspiracy — keep an eye on opponents. Libra Your day may begin on a joyful note. At work, quick decisions could lead to benefits in the near future. A new source of income may arise, improving your savings. With your partner's support, you might invest in a business that promises future profits. Greater understanding with your spouse will enhance domestic harmony. Scorpio A busy day at the office may leave you mentally tired, limiting time for family. With elders' blessings, job seekers may secure high positions, and managers could be promoted to senior roles. Recognition and rewards are likely, boosting your professional standing. Sagittarius Patience and a positive mood will enhance your work efficiency today. You may plan a visit to a religious place or make charitable donations. Lovebirds will deepen trust in their relationship, and you'll have the upper hand over opponents. Capricorn A low mood and lack of energy may impact your work, causing delays in projects and affecting your reputation at work and home. Avoid adventurous activities and reckless driving. Lovebirds might face relationship setbacks. Job seekers may experience disappointment. Aquarius Positive energy surrounds you, bringing stability. You may plan to start a new business in partnership and possibly arrange long-distance travel. Strengthened trust with your spouse will promote domestic harmony. Pisces You may perform exceptionally well at work today, earning the trust of your boss and possibly receiving new responsibilities or promotions. Chronic health issues may improve. Incentives for your work are possible, and disputes with siblings could be resolved. Job seekers may find promising opportunities. Discover everything about astrology at Times of India , including daily horoscopes for Aries , Taurus , Gemini , Cancer , Leo , Virgo , Libra , Scorpio , Sagittarius , Capricorn , Aquarius , and Pisces . Read your detailed Horoscope Today and Horoscope Tomorrow here.
Time of India
an hour ago
- Time of India
Capricorn Daily Horoscope Today, August 21, 2025: An old issue returns to trouble you
You may recognise how much you have grown from past challenges today. Moments that once felt heavy may now seem like stepping stones to your current strength. This awareness will give you confidence in handling present situations with more maturity. It is a good time to reflect and appreciate your progress while planning ahead with a steady mind. You will notice that patience and persistence have shaped your path in ways you did not realise before. Capricorn Love Horoscope Today Love feels more secure as you understand how past experiences have shaped your heart. If you are in a relationship, you may feel grateful for the strength you both have built together through ups and downs. If single, you will approach love with more clarity about what you truly want and deserve. This maturity will make you more attractive to those who value stability and sincerity. Emotional honesty will bring deeper connections and lasting warmth. Capricorn Career Horoscope Today In your career, recognising lessons from past challenges will help you make better choices. You may face a familiar situation, but this time you will handle it with more skill and confidence. Others will respect your ability to stay calm under pressure and solve problems efficiently. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Use an AI Writing Tool That Actually Understands Your Voice Grammarly Install Now Undo Use your experience to guide others who might be struggling, as this will also strengthen your leadership qualities. Your steady approach will inspire trust and open future opportunities. Capricorn Money Horoscope Today Financially, you can use past mistakes or lessons to improve your current planning. You may realise the value of discipline and patience in building security. Avoid repeating old patterns of spending without thought. This is a good day to review your budget, focus on steady savings, and ensure you are prepared for unexpected situations. Your wise handling of resources will give you peace of mind and a stronger foundation for future growth. Capricorn Health Horoscope Today Your health will benefit from the discipline you have built over time. If past difficulties taught you to take better care of yourself, continue following those habits. Small routines like balanced meals, regular movement, and enough rest will keep your energy stable. Pay attention to warning signs from your body and address them early. Mental calmness gained from experience will also help reduce stress and maintain overall well-being in the long run. Discover everything about astrology at Times of India , including daily horoscopes for Aries , Taurus , Gemini , Cancer , Leo , Virgo , Libra , Scorpio , Sagittarius , Capricorn , Aquarius , and Pisces . Read your detailed Horoscope Today and Horoscope Tomorrow here.
Time of India
an hour ago
- Time of India
Now, Gill's a smash hit with brands
Gill MUMBAI: Indian cricket's latest blue-eyed boy, Shubman Gill , is the new favourite with brands. His stellar performance in the India-England Test series, both as captain and batsman, had already bolstered his brand value. Now, Gill's selection for the Asia Cup as vice-captain will only give further impetus to his brand equity. A Gen Z with much of his career ahead of him, Gill has all the chops a brand looks for. "Gill's brand value has appreciated by 30%-40% post the India-England series. His brand fees will increase anywhere in the range of 25%-50% depending on the kind of brand approaching him," Neeraj Jha, senior sports analyst and commentator, told TOI. From automobiles to global luxury brands, queries for Gill have shot up from an average of three to four per month to about 10-15 now, sources aware of discussions said. Gill currently charges endorsement fees in the range of Rs 4-5 crore for one brand per year. That can now easily go up to anywhere between Rs 6-8 crore, said Neerav Tomar, managing director and CEO at IOS Sports. Another analyst said that a few of his earlier deals were in the range of Rs 2-Rs 3.5 crore. "Gill already endorses close to 20 brands, and this number should go up. Youthful brands will seek new faces. Gill is the new Virat Kohli ," Tomar said. Gill's team, however, declined to comment. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like TV providers are furious: this gadget gives you access to all channels Techno Mag Learn More Undo The cricketer bagged a few big deals before the Test series. Tyre major MRF and global eyewear brand Oakley (for India) signed Gill as their brand ambassadors. Gill also expanded his associations with Casio and Coca-Cola during the year. From about eight brand associations in 2023, Gill's brand portfolio nearly doubled to 16 in 2025. The cricketer is estimated to have earned about Rs 40 crore in endorsement earnings in 2024. "A lot of MNCs are looking to sign Gill. Small brands can't afford him. His fees will only go up if he keeps on delivering," said Amitesh Shah, founder and CEO at sports, media, and entertainment company Legaxy, who estimates Gill's brand value to see a boost of over 40%. Sources said that Gill is "selective" about his brand partnerships, ensuring alignment with his values and career journey. Going ahead, perenniality (ability to deliver across all cricket formats) will be key for Gill to bag big brand deals, said Sandeep Goyal, chairman at Redifussion. "Perenniality leads to continued visibility, which is key to the endorsement game," said Goyal. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
