Same 14 percent. Same 25 lakh.
One sends a tax bill every year.
84.38
Mutual fund, tax deferred to exit, Rs lakh after 10 years
vs
72.27
PMS, taxed on the manager's trades each year
A friend was deciding between a mutual fund and a PMS running roughly the same strategy. Same kind of stocks, same kind of manager, same gross return on the brochure. He was looking at the fee line. Nobody had told him the bigger gap was hiding somewhere else entirely. In who pays the taxman, and when.