New stamp duty charges from July 1: What changes for mutual fund investors

A stamp duty of 0.005 per cent will be levied on issuance of units, and 0.015 per cent on transfer of mutual fund units.

Mutual fund (MF) investors are bracing for lower returns after the introduction of stamp duty charges from July 1.

A stamp duty of 0.005 per cent will be levied on issuance of units, and 0.015 per cent on transfer of MF units. An issue of units includes purchase, switch-in and dividend reinvestment, whereas a transfer implies off-market transactions. Investors who issued units in liquid and overnight funds, as well as those with a short-term holding of less than 30 days, are likely to be impacted the most, say experts. The Centre had notified the amended stamp duty regime on the