Taxability of Aggressive Mutual Funds
In terms of taxation, aggressive growth funds are classified as equity funds. Capital gains received within one year are classified as Short Term Capital Gains (STCG) and are taxed at 15%.
If an investor holds investments for more than a year, the earnings are categorised as Long Term Capital Gains (LTCG) and free if profits fall under one lakh and are taxed at 10% if the profits exceed one lakh. Dividend profits from these funds are normally added to the investor’s income and taxed based on their tax rate. TDS will be applied if these gains exceed ₹5,000.