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What are the Charges for Investing in Mutual Funds through Torus?

1. No Brokerage Fees:

a. Torus does not charge any brokerage fees for buying or selling mutual funds, ensuring a cost-effective investment experience.

2. Expense Ratio:

a. This is a fund management fee charged by the Asset Management Company (AMC) to cover operational costs.
b. It typically ranges from 0.5% to 2.5% and is deducted from the fund's Net Asset Value (NAV), impacting overall returns.
c. The expense ratio is automatically factored into the NAV, so investors do not need to pay this separately.

3. Exit Load:

a. An exit load is a fee charged when you redeem (sell) your mutual fund units within a specified holding period.
b. This fee can range from 0.5% to 1%, depending on the fund’s exit load policy.
c. If applicable, the exit load is deducted from the redemption amount before the funds are credited to your account.

4. Securities Transaction Tax (STT) & Capital Gains Tax:

a. STT: A government-mandated tax of 0.001% on the NAV is applicable to equity-oriented mutual fund redemptions.
b. Capital Gains Tax:

i. Short-Term Capital Gains (STCG): If equity mutual funds are sold within 1 year, a 15% tax is applied to the gains.
ii. Long-Term Capital Gains (LTCG): If equity mutual funds are sold after 1 year, a 10% tax is applied on gains exceeding ₹1 lakh in a financial year.
iii. For debt mutual funds, taxation depends on your income tax slab.

Where can I view these charges?

Detailed information about applicable charges can be found in the “Charges” section of the Torus website or app.
The expense ratio and exit load details are available in the mutual fund scheme detail page.
Tax-related charges will be reflected in your transaction summary and tax statements in Report section.

Last updated: 5 Months Ago

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