The taxation of returns from PMS and Mutual Funds
Investments in mutual funds are taxed only when the investor sells the units
Mutual funds and portfolio management service (PMS) are two popular vehicles by which people can invest in portfolios curated by experts. Both have their distinctive features in terms of ticket size, costs, transparency, taxation, etc. However, what matters most to investors is the money that they receive in hand, that is, their post-tax returns. Hence, it is critical to understand the taxation aspect of mutual funds and PMS in detail.