Hi There,
If I have a huge sum of cash from a property sale proceed, what is the best option to park for 3-4 months as I have understood from a little research that liquid funds and arbitrage funds are good to go.
I need to en-cash when I need immediately after 3-4 months. Need to know about taxation, and how quickly I can withdraw cash once invested etc, please guide me
Also, can I transfer this huge amount from my bank to Coin app funds at one stretch or should we have to break it up
You may check out this Varsity video (1 + 2) or modules by Karthik sir for analyzing the debt funds suitable for a short term.
For liquid funds, capital gains are taxed as per the tax slab rate, regardless of holding period. However, for arbitrage funds, they are taxed as equity funds. You may refer to our support article for more details on mutual fund taxation, and this article by AMFI for information on mutual fund categorization.
An exit load may be charged if units are redeemed within a specified period by AMCs. You can check the exit load conditions on Coin.
Once a redemption order is placed, the funds are typically credited to your bank account within T+1 business day for liquid funds, and T+2 to T+3 business days for arbitrage funds (T being the order placement date before the cut-off time).
There is no limit on the amount you can invest in mutual funds per transaction on Coin; however, your bank may have transfer limits for net banking, IMPS, or NEFT transactions. Please check with your bank regarding transaction limits for large amounts.
Thank you very much Arjun