Investors can earn more by putting money in Mutual Funds

ShareSansar, July 17:

The newly introduced Finance Ordinance has ensured that share investors can get more benefits by investing in mutual fund rather than buying shares individually.

As per Finance Ordinance 2070/071, investors will have to pay only 5 percent tax on mutual fund earnings.

The ordinance has freed the mutual fund investors from capital gain tax, income tax and the tax on the interests earned from deposits in banks and finance institutions

The new provisions address to a great extent the problem of double taxation in regard to mutual funds.

The ordinance also frees mutual fund investors of the obligation to pay taxes on return on investments from any share or bonds.

According to the Finance Ministry, the provisions in the ordinance will go into effect after SEBON introduces them in the form of a directive.

The facility is expected to give a boost to the capital market.