Hello Team,
When individuals are in the 30% tax bracket and are considering investing in mutual funds, it might be beneficial to consider Unit Linked Insurance Plans (ULIPs). This is because investments up to 2.5 lakh INR in ULIPs are tax-free, and the returns are also tax-free.
On the other hand, in the case of mutual funds, especially equity funds, there is a 10% Long-Term Capital Gains (LTCG) tax on gains exceeding 1 lakh INR per annum.
Therefore, considering the tax benefits, ULIPs could be a more tax-efficient investment option compared to mutual funds for individuals in the 30% tax bracket.
Let me know if you know thoughts ?