What Are STCG and LTCG in a Systematic Investment Plan in Jodhpur?
Many investors invest in mutual funds through a Systematic Investment Plan in Jodhpur . SIP helps you invest small amounts regularly and build wealth slowly. But along with returns, you must also understand how your SIP is taxed. When you redeem your mutual fund units and make a profit, that profit is called capital gain. This gain is taxed in two ways: ● Short-Term Capital Gain (STCG) ● Long-Term Capital Gain (LTCG) The type of tax you pay depends on how long you stayed invested. What is Capital Gain in SIP? In SIP, you buy units every month. When you later sell those units at a higher price, the difference between the buying price and selling price is capital gain. ● If you sell early, it becomes STCG ● If you sell after a longer period, it becomes LTCG What is STCG in SIP? STCG (Short-Term Capital Gain) is the tax on profit earned when you sell your mutual fund units before completing the short-term holding period. For ...