ETFs (Exchange Traded Fund)
How are the dividends on Liquid ETFs and Liquid BeES taxed?
Dividends: The dividends received from Liquid ETFs and Liquid BeES are taxed according to the investor's income tax slab rate. Sale of Units: When the units are sold, the amount on which tax has already been paid is considered the cost of ...
What is an Exchange Traded Fund (ETF)?
An Exchange Traded Fund (ETF) is a collection of investments such as equities or bonds. Here are some key points to understand about ETFs: · Diverse Holdings: ETFs allow you to invest in many securities at once. This can include stocks, bonds, or ...
Can we transfer ETFs to another demat account like how we do for equity?
Yes, you can transfer ETFs to another demat account like you transfer equity shares. Here’s how you can do it: Steps to Transfer ETFs: Using Delivery Instruction Slip (DIS): Obtain DIS: Get the Delivery Instruction Slip (DIS) booklet from your ...
Are There Tax Implications with ETFs?
Yes, ETFs have tax implications, which vary depending on the type of ETF and the holding period. Here’s a detailed overview: Capital Gains Tax: For Equity ETFs: Short-Term Capital Gains (STCG): If you sell equity ETFs within one year of purchase, the ...
Are There Different Types of ETFs?
Yes, there are different types of ETFs, each designed to cater to various investment needs and objectives. Here are some of the main types: 1. Equity ETFs: o Description: Equity ETFs are index-based passive investment vehicles that invest in ...
Are ETFs Closed-Ended Funds?
No, ETFs are not closed-ended funds. ETFs are open-ended funds, meaning they can constantly take on new investors, and as they do, the fund's assets grow. They offer flexibility in trading and the ability to issue and redeem shares continuously. This ...
Are ETFs active or passive?
ETFs can be either active or passive. Here's a brief explanation of each type: Passive ETFs: Objective: Aim to replicate the performance of a specific index, such as the S&P 500, NASDAQ-100, or another benchmark. Management Style: Passively managed, ...