How is securities transaction tax paid in a mutual fund?

mutual funds - securities transaction tax or stt

Level - BASIC

A mutual fund pays an STT each time there is a sale or purchase of securities on the stock exchange. This investor education video by Moneykraft describes the importance of STT for investors, especially redemption proceeds of equity oriented funds.

AUTHOR(S): Uma Shashikant

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    1.STT is applicable on ____________ of equities on the stock exchange.



  • Sale only
  • Purchases only
  • Purchases and sale
  • 2.Which of the following is "NOT" subject to securities transaction tax



  • Redemption of a mutual fund
  • Purchase of mutual fund on stock exchange
  • Purchase of mutual fund from the fund house
  • 3.In case of STT on purchases and sale of stocks by the mutual fund, which of the following statements is true?



  • It is reflected in the NAV
  • Investor has to bear the STT
  • STT is exempt
Sponsor Name : NCFE
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52 years ago

Nice information in all the videos.Can you make a video on the ELSS ?What will happen if someone has already invested in an instrument and claimed 80C deductions in the other instrument. Can he still invest in ELSS and benefit Compared to investing in a FD at a bank or NSC.